Patrick Stracuzzi’s Prediction of our local real estate market.
My team and I have sold over a billion dollars in real estate, as well as thriving in all the ups and downs in the real estate market on the Treasure Coast for the past 30+ years. Despite economic situations, unpredictable weather challenges, and the current pandemic conditions, we have consistently been able to record sales year over year. .
Here are the most common questions asked to me regarding the real estate market here on the Treasure Coast.
1) Is the real estate market here on the Treasure Coast going to bust?
Plain and simple…no. The real estate market is going to continue to thrive. There is a shortage of supply of homes and the demand to live here is high.
Due to the pandemic, we are a destination where people want to live. With Zoom, buyers are able to work where they live. Consumers are coming from metropolis locations who are choosing to live a healthier, stress-free lifestyle. They are tired of the everyday, constant commute back and forth from work to home, spending most hours of the day sitting in traffic. Along with the unhealthy living conditions in large cities as compared to the healthier, utopia lifestyle here on the Treasure Coast.
In addition to living a better quality of life in Florida, another benefit is there are no State sales taxes on consumers paychecks, as well as their pension. If one creates residency in Florida and has a homestead residence, the benefits are there is no state sales tax. To qualify for homestead, you must have a Florida Drivers license and prove you reside in Florida for 181 days or more, making Florida your primary residence. If you have an out of State pension it is not taxed if you have Homestead in Florida. Homestead also protects your primary residence from tax increases, ensuring your property taxes will not increase by more than 3 percent per year. If your taxes do go up, you have rights to dispute.
The benefit of living in Florida is not only a better quality of life but, also putting your hard earned money in your bank account vs paying State taxes and putting more money into the states bank account.
2) Do you recommend me to build vs buying a resale?
Hyper inflation will continue. Consumer increases on product is at an all time high as well as increases in cost of labor. Analyze cost and time vs a resale. Make sure if you are building to have a price out the door, all in. As well as a competent and long staying builder with a long time reputation. Many builders are building at a cost plus then percentage on top. This could be an analysis of putting out a fire by throwing more money on the fire.
Cross your t’s and dot your i’s, pay attention to the details. If you are choosing to build I would recommend to use an attorney to review your agreement before you sign so as not to be surprised later.
3) How do I know if I am overpaying?
A mentor of mine once taught me…you can never pay too much for Park Place or Boardwalk in the game of Monopoly. Always buy location, location, location. And if you do land on Boardwalk or Park Place I would recommend to invest and buy it.
Remember, you can change floors, kitchens and baths but you can not change the location. Look for the unique selling proposition in the property you are looking to purchase. What makes the home you are selecting unique or one of a kind? For example, a property with a 7 foot draft for your boat and close to the inlet is unique and unusual.
4) Do you feel there will be more waves of buyers or do you feel it will come to a halt?
I do feel there will be more waves of buyers. The busiest time for Florida purchases is Summer. Families move in time to register and get their kids set up for school, whether in person or via Zoom.
As buyers get their 2nd COVID shots, they will be coming to Florida. This year we will see more and more buyers choosing The Treasure Coast to call their home. Inventory will remain low and demand will be high. This will create multiple offer situations and I believe there will be an uptick in prices rising as inventory diminishes.
With the pandemic people realize life is short. I have tremendous gratitude to call the Treasure Coast my home. I have tremendous gratitude to be able to help others achieve their dreams. I have tremendous gratitude for my family and my team. Thank you to everyone responsible for keeping our good nature here in our community.