I recently read an interesting historical novel about the wealthy landowners in the South in the years just before the Civil War. These privileged folks moved their entire households, including their money – carried in the form of gold transported in chests – to escape the summer heat. Well, things haven’t changed that much, only this time the money is in the form of wire transfers and the migration isn’t from a warm climate but to a warm climate.
According to the IRS’s report about migration of taxpayers between states, 2020 was a banner year for states with low tax policies, and guess which state accrued the most income? Florida had $23.7 billion more in income for 2020, followed by Texas with $6.3 billion and Arizona with $4.8 billion. Of the remaining top income-producing states, no one was even close to Florida, which stands alone in this area.
I probably don’t need to tell you where all of this wealth is being transferred from, but I will: California, Illinois, Massachusetts, New York, New Jersey and other Northeastern states. New York state lost the most income, topping out at $19.5 billion.
Obviously, the flow of money is attached to their owners moving to our state and looking for properties to purchase, which accounts for the following analysis of $1-million-and-over properties in our area. This report covers six months from Nov. 1, 2021, through April 30, 2022. The available and pending properties are from the realtor.com website and the closed properties are from the Manatee County Property Appraiser’s website.
In Cortez, currently on the market or pending there are three properties listed over $1 million; at $4,750,000, $3,350,000 and $2,950,000. The new community of Hunters Point has several properties listed, all of them over $1 million, starting at $1,850,000.
Anna Maria has 44 properties listed or pending $1 million or over; three over $8 million, two over $6 million, three over $5 million, seven over $4 million, nine over $3 million, 17 over $2 million and three over $1 million. The combined cities of Holmes Beach and Bradenton Beach have 69 properties listed or pending over $1 million; one listed over $28 million, one listed over $14 million, one listed over $11 million, one listed over $19 million and one listed over $7 million. There are also four listed over $6 million, one listed over $5 million, five listed over $4 million, seven listed over $3 million, 24 listed over $2 million and 23 listed over $1 million.
As far as closed properties, Cortez had five over $1 million. Anna Maria had 82 over $1 million, two over $9 million, one over $7 million, two over $6 million, three over $5 million, five over $4 million, six over $3 million, 29 over $2 million and 34 over $1 million. The combined cities of Holmes Beach and Bradenton Beach closed 128 properties over $1 million, five over $9 million, one over $8 million, one over $5 million, 12 over $4 million, eight over $3 million, 26 over $2 million and 75 over $1 million.
All three areas increased their closed sales from the previous six months by approximately 30% to 50%. The available and pending listings also increased, but by a much smaller amount. In addition, the selling and listing prices are also higher than six months ago.
Our new residents may not have gold in their suitcases, but the cash keeps flowing into Florida anyway, and not for just a visit, as in years past, but for a lifetime. The rest of the country may be slowing down, but Florida isn’t getting the message.
