Florida Keys Real Estate Sales Statistics for July 2021 tell the story...buyers are up against the no inventory wall ... the scramble for their Paradise Home before the looming "build out" has been foiled...the moratorium brought an end to the supply of any new building rights, period. So now, properties continue to sell quicker for more money, which is good for some sellers, but, for other sellers it's a double edged sword, they are not finding the replacement home here and are taking their listings off the market, exacerbating the lack of supply ... some Year over Year highlights:
Single family homes
Dollar Volume +34.5%
Average Sales Price +34.5%
Median time to contract -92.4%
Active listings inventory -62.7%
New listing +46.2%
Closed sales -58.3%
Paid in Cash -66.7%
New Pending Sales -16.7%
Pending inventory -25%
Active listings inventory -52.9%
Dollar Volume -41.6%
Condos and Town homes:
Closed Sales +0%
Average Sales Price +34.5%
Dollar volume +34.5%
New Pending Sales -56.7%
Pending Inventory -40.6%
Active listings Inventory -62.7%
Buyers remain hopeful, that prices will crash...however, inventory shortages stymie that Hope...about 59% of all Florida Keys Real Estate for sale remains under contract right now !! Inventory and Months of supply numbers are way down across the board, as buyers compete for the dwindling supply of homes in Paradise, as the build out here in the Keys, and what it means, is now a fact... it's real, it's here...new building rights through ROGO they are gone. Note: this is still not common knowledge with the legions of out of town buyers who continue to stack up...
There are still 10+ buyers for every home, there is definitely a "lock-out" happening where buyers no longer can get what they were looking at a few months ago for the same money, and have given up looking, or remain Hopeful for the "inevitable crash" that is going to happen in their minds. Other buyers are simply locked out of the market completely. The issue continues to be lack of supply. Had there been more supply, the numbers would have continued to accelerate at April's phenomenal levels.
What does "build out" mean? It means no more new building permits for new dwelling units in the Florida keys ! Renovations will be permitted, but the number of dwellings is capped. The remining available new dwelling permit slots remaining open are filled twice over with the application line up...but there is a work around if you are thinking about building a new home, you can buy a building right on the open market, THERE ARE SOME STILL FOR SALE...CALL ME!
What's going on? Demand from just about every demographic and geography for all possible reasons is keeping a fire burning under Florida Keys Real Estate. Covid has also changed attitudes towards work, retirement, health, safety, and quality of life, in a manner that has made owning Florida Keys Real Estate even more attractive than it already was. A new cohort!!...landlords burned with the eviction moratorium are looking for vacation rental properties that do not have the same constraints and regulations as regular rentals...
Investors, second home buyers, retirees, local families, continue to put pressure on the remaining homes in the Florida Keys as the build out becomes more well known ... NO MORE SUPPLY.
Average and median sales prices are reflecting the inevitable price appreciation. Relatively speaking, the Florida Keys remain "undiscovered" to a certain extent on a Global basis, but that is now rapidly changing. Compare Florida Keys waterfront home prices to Key Biscayne near Miami, or waterfront in California, and you can see that Keys prices are a fraction of those prices. There still appears to be a runway for higher prices yet.
Of course, there are always those that will try and "call a top". Who knows? Interest rates are low vis a vis the real inflation out there, decent safe investment yield is hard to find, REAL inflation is happening in risk assets, and the printing presses are running flat-out 24/7 ! Real estate has always been an excellent investment during times like this, and what might look like a top today, but looking back in a few years, will look like an excellent buying opportunity and a decent entry into a market with a known and mandated limited supply, that has excellent cash flow opportunities.
Thankfully, Real Estate values are easy to decode, one metric is that it is worth the future value of it's cash flow. It's also a great inflation hedge that has stood the test of time.
Contact us now at 305-781-5704 call/text, or TheKeysLifestyle@gmail.com, to find out how owning Florida Keys Real Estate can fit into your plans and portfolio!