Friday, May 17, 2019 / by Jordana Tobel
"Continuing a trend that we've been seeing for quite a while, median sales prices for both existing single-family homes and for condo-townhouse properties rose in Florida during the first three months of 2019," says 2019 Florida Realtors President Eric Sain, "The state's population continues to increase, our jobs outlook is strong and the economy is growing."
In fact, Florida continues to be ranked as the second-best state in the U.S. to do business, according to the 2019 survey of CEOs from Chief Executive magazine.
Big earners in high-tax states like New York, New Jersey and Illinois hit hard by a new federal tax law are flocking to low-tax states like Florida, according to the Wall Street Journal.
"I've been starting to see New Yorkers as Florida's new foreign buyer," says real estate appraiser Jonathan Miller. “If they were already on the fence, I think the tax law has changed that.”
Florida had the highest level of domestic migration from July 2017 to July 2018, according to Census data and as reported by the Journal. New York was the overall population loser, followed by Illinois.
With this shift comes a rise in the median price in Florida, and a drop in New York City’s sales. Manhattan’s condo and co-op sales last year were down 12% from 2017, to their lowest level since 2009.
The federal income tax law that went into effect at the start of last year cut taxes for most Americans, however the deduction for state and local income and property taxes was capped at $10,000. This same bill also capped the mortgage interest deduction for loans no more than $750,000 – which hurts states with higher home prices.
Since many residents in New York, New Jersey, and Connecticut had been deducting over $10,000 a year, the new tax rules cost them tens of thousands of dollars more than if they lived in states like Florida and Texas that have no state income tax, the Journal reported.
"A lot of rich people are trying to find a way out of New York," Barry Horowitz, an accountant who specializes in helping clients switch residency to lower-tax states, told the Journal. What does that mean for you? That means if you are buying, buy now rather than wait. Chances are next year the prices in Florida will be higher.
For questions on Florida real estate or to start your home search, contact us at info@Premierlistings.com or contact your Premier Listings Sales Associate.