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A month into 2023, Haute Residence Experts predict the trends for their real estate market this year.
Moriah Taliaferro, Sarasota, FL
The year ahead is going to bring a welcome balance while continuing to support increased property values that benefit current and prospective homeowners. 2023 is going to be a great year for those who can access capital. Sarasota's growth momentum will continue - we are one of the fastest-growing cities in the U.S. and you can feel the energy from all of the new residents and opportunities here! There are a lot of new construction projects adding luxury inventory with such a wide spectrum of lifestyle appeal. Apart from new construction, we're seeing more listings come on the market, offering buyers more options and easing the pressure that's been driving our local dynamics for the last two years. For real estate in general, I think we'll continue to see a migration away from some major cities and, in turn, we'll see growth in mid-markets. Florida has been at the forefront of this trend since 2020 and there's no slowing down.
We just came from one of the most robust luxury markets ever recorded on St. Croix and we don’t think it will taper off too much in 2023 despite the rest of the world slowing down a bit. There are several things feeding our market, specifically our luxury market.
Baby boomers are retiring or stepping back from running their companies full-time and looking to move to warmer weather and a slower pace of life. Many are skipping Florida as it has priced them out and is too busy and flying down to the US Virgin Islands in search of greener pastures, warmer days, and the Jimmy Buffett experience they have been dreaming of.
1031 exchange buyers are flocking to St. Croix! Even though as a US territory we have always had the option for buyers to do a 1031 exchange, many were unaware that was an option in the US Virgin Islands. The word is out and the investors are coming!
Our EDC program is by far one of the best tax benefit programs for companies in the US! We don’t have the data to back this up, but this is what we have heard from many of our EDC partners on St. Croix in the US Virgin Islands. This incentive program invites business owners, their partners, and executives to the islands, where many of them move full-time and purchase real estate, typically in the luxury and high-end commercial segment of our market.
We are part of the US – not only does this mean no passports, but it also gives buyers the sense of protection of purchasing a home on US soil.
St. Croix has been featured in more travel magazines in the last couple of years than ever before – and the world has noticed! This has invited travelers, buyers, investors, developers, and so many others that have helped our island flourish. St. Croix’s economy was always supported by other means and was overlooked by our Department of Tourism which primarily focused on promoting STT and STJ, until recently. Our island is the unique eco-tourism, off-the-beaten-path experience travelers and buyers have been looking for.
Even though many people are interested in entering St. Croix’s real estate market, some are still watching and waiting for new inventory which is starting to happen now since ours has been so low. We are excited to continue watching St. Croix grow and to share this unique island with others. Come visit us and let us show you why St. Croix is a Vibe Like No Other!
Priscilla Haisley, Miami Shores, FL
Even after the big shift that we’ve seen happening in the past 6 months, the housing inventory is still low. I believe the pre-construction market is now attracting not only Americans but foreign buyers as well. Amazing projects are breaking ground in the first quarter of 2023, and now is the time to get it under contract with relatively attractive prices.
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In 2023, we will be seeing more movement inland, particularly in the Cayo district in areas such as San Ignacio and along the scenic Hummingbird Highway. Another trend will be more traffic down south in the Hopkins/Placencia area due to the newly built Coastal Road allowing for easier connectivity between the south and main hub, Belize City. Some trends that will continue our sustained growth in the island markets of San Pedro and Caye Caulker, especially for resorts.
Lori Suarez, The Curated Collection Group, Las Olas Isles, FL
We are coming off a historic market defined by high demand and a lack of inventory, with the market now transitioning to more typical activity levels. Buyer demand remained high and all eyes keep focusing on Florida's East Coast for relocation and investments.
Alyssa Brody, South of Fifth, Miami, FL
South Florida, particularly Miami, has seen two years of significant pandemic-fueled growth. Despite a recent slowdown caused by macroeconomic realities, home prices have steadily risen year-over-year further signifying the growing demand and need for housing. Over the next year, I anticipate that we will see more buyer interest in new development projects as there is substantial inventory coming to market, and since completion for many of these buildings is further out, there are less stringent financing requirements making it a more appealing option. We are also still seeing a 'great migration' mentality as buyers look to relocate from current metro areas to Florida, which I believe will continue in 2023 as a result of the explosive entertainment, employment, and culture opportunities in Miami.
2023 is already reflecting a more negotiable market. There are fewer Buyers but the ones who are actively looking are more serious and committed.
It's still too early to tell because the rain crushed Northern California over the past six weeks from December 18th through Martin Luther King weekend, which made it nearly impossible to schedule listing photography. Nor did anyone want to go out in the awful storms! We did, however, enter a few listings in the MLS as "Coming Soon" and they are already being shown. I believe our market will be ramping up over the next few weeks. Buyers have been waiting for rates to settle, but they still need a home, whether they choose to rent or buy; with rental rates so high, buying is the better option, if one can afford to.
