The Beach Boys sang about “The Warmth of the Sun.” And as much as they loved California, this simple feature of coastal living continues to draw people to Florida, putting the Sunshine State in a unique position in the real estate industry. The scenery and the appeal of outdoor living often outweigh other factors when people consider making a move.
Paddleboarding on the Gulf or golfing on the greens can be enough motivation to home buyers. But buying and owning homes in Southwest Florida is often far from smooth sailing. Changes in the economy, unpredictable weather and a troubled insurance climate may overwhelm homebuyers. That’s where the help of a Realtor is vital. REMAX Hall of Fame Realtor Denise Henry believes, even with turbulent times, the lure of Florida will continue to draw relocators in search of its “Good Vibrations.”
“The common element for all Florida buyers is the ability to enjoy the beautiful climate,” she said. Mortgage fluctuations, the pandemic and storm frequency influence the industry, but buyers constantly return to embrace the tropical lifestyle.
“There will always be an appeal to move to Florida despite hurricanes,” Henry said, adding that rather than fearing hurricanes, experienced buyers are more concerned about “the cost of insurance coverage. Flood insurance is a deterrent for many buyers who want to live waterfront.”
According to Lawrence Yun, chief economist and senior vice president of research for the National Association of Realtors, “The higher cost of owning due to rising insurance costs has dampened buying activity. Condominiums are taking a bigger dip in sales and prices compared to single-family homes due to the extra maintenance cost and reserve funds necessary in the condo market.” But on the sunny side, he added, “The price declines are a single-digit percentage after the robust 50% gains since 2000, so this is not too concerning.”
REMAX’s Henry is quick to offer her ideas on how those interested in the market can work around challenges — “There are many beautiful communities out of the flood zone,” she said — and works to offer her clients a selection of properties fitting their needs and budgets. “Buyers relocating from Northern states are typically looking for open-floorplan homes with pools and three-car garages,” Henry said. For those with simpler tastes, coach homes and villas may be suitable options. “Typically,” she added, “villas are more desirable and affordable than maintaining a single-family home year-round.”
NAR’s Yun agreed that the influx of Northern residents can only be good for the market. “One continuous positive factor for all Florida markets, including the southwest gulf region, is the large number of new residents moving from other states. This trend will likely push up home prices again after these initial slight declines.”
Outdoor living, the idea of year-round “Fun, Fun, Fun,” will continue to motivate people to buy. “I have been a Realtor for over 20 years in Southwest Florida,” Henry said. “The pandemic years saw an influx of younger remote-working buyers and the shift toward Northeast transplants, which really speaks to how Southwest Florida’s appeal is broadening. Our coastal communities are not just for retirees.”
Finding a property that is as harmonious to your needs as a Brian Wilson tune is possible if you take your time and consider your priorities.
“It’s not the fear of hurricanes that’s concerning today’s buyers,” Henry said. “It’s the rising cost of flood insurance for coastal properties. That’s why many homebuyers are seeking homes outside the flood zone, eliminating the added expense while still enjoying the beautiful Gulf Coast lifestyle.”
“Don’t worry, baby; everything will turn out alright …”
