The Pandemic has Fueled a Home Buying Frenzy in Miami
A new report from Redfin shows that homebuyers have tripled in the market since last year.
Miami is the newest hotspot for home sales. Miami has been in the top 10 markets for home searches since 2017, but this year, the metro claimed the number one spot, according to a report from Redfin. In the last year, the number of homebuyers in the market has tripled.
The pandemic has played a key role in Miami’s surge. The market was a top relocation destination with new residents coming from Atlanta, Cincinnati, New York, Columbia, Mexico City, Pittsburgh and Philly, according to the data. The beaches, low taxes and warm weather are the top reasons why people are relocating to the market.
As a result of the demand, home prices are increasing as well. The number of active condo listings in South Florida is rapidly shrinking, according to RelatedISG Realty’s 2021 Q2 Miami, which anticipates a rise in condo prices over the next few months. There were nearly 24,000 condos for sale in listings across Miami-Dade, Broward and Palm Beach counties last year. In addition, Single-family homes are often selling at the listing price or higher, with no contingencies, all cash, and bidding wars.
While Miami has a lot to offer, Redfin also notes that it also has increased exposure to natural disasters and is a one of the most vulnerable places in the world when it comes to coastal flooding. More than half of the property in the market has an increased risk of flooding, and rising sea levels could displace nearly 2,600 residents. However, homebuyers moving to the market aren’t concerned about climate change. “The homebuyers I talk to rarely mention climate change. Most of them aren’t concerned,” Miami Redfin real estate agent Milagros Alvarez said as part of a statement about the data.
In addition to Miami, Sacramento, Phoenix, Las Vegas and Tampa were also the top migration destinations. Overall, people are moving from San Francisco, Los Angeles, New York, Washington, D.C. and Boston—which were the top markets for exodus. According to Redfin, it isn’t unusual to see people exit large cities, which are often expensive, during an economic dislocation, but the pandemic certainly accelerated the trend.
Overall, the relocation trend is slowing down. In July, fewer people moved out of major cities or into cities at the top of the list than did earlier in the year.