In recent years, the Sunshine State’s temperate climate, pro-business policies, and beneficial tax laws have attracted a vast array of homebuyers and investors. When the US Jobs and Tax Act went into effect, the SALT tax motivated many affluent out-of-state buyers from high taxation states to migrate into Florida. Then in March of 2020, the outbreak of the novel coronavirus in the U.S. stopped everything in the country. At that point, Florida’s then-thriving real estate market temporarily froze. Today, home prices and values in the state appear as if nothing happened. Given all that’s occurred since March, why are Florida real estate values up during the pandemic?
Florida Property Appraisals
In early September, Florida property owners receiving their tax assessments may be surprised to see higher proposed property taxes. For those who wonder how their home values could have gone up, the answer is relatively simple. Property assessment values reflect a snapshot of a home’s value at a given time based on its comparison to other comparable homes in the area and other market data. Under Florida law, property tax assessments are completed in January. In January of 2020, the real estate market was still going strong in cities such as the Town of Palm Beach and Palm Beach Gardens. Further, according to reports, 2019 had record-breaking prices in home sales. By January, the more popular communities in Florida were seller’s markets.
Florida Home Prices
Although the COVID-19 outbreak slowed the real estate market, the temporary pause did not last long. In communities such as the Town of Palm Beach, real estate brokers began getting calls almost immediately from parties seeking to lease luxury properties during shelter-in-place. There were also inquiries from out-of-state buyers looking to expedite purchases in South Florida to get away from impacted places such as New York, New Jersey, and Connecticut. If anything, these new conditions have added to housing demand, making certain Florida properties scarcer and more desirable. Real estate prices have not gone down and are expected to remain stable or to rise.
Contact Our Palm Beach Real Estate Attorneys Today
At Rabideau Klein, David E. Klein Esq. and Guy Rabideau, Esq. are Florida Bar Board-Certified Real Estate Attorneys with extensive experience in the Town of Palm Beach and its surrounding areas. We have the expertise and local knowledge you need to assist with all aspects of your Florida real estate matter. Contact Rabideau Klein today to discuss your real estate legal needs.