Buyers continue to move to Florida

In February, the number of buyers searching listings outside their state dropped 3.6% year-to-year – but those looking locally fell 14.4%. For a variety of reasons, Florida continues to be the fastest growing state in terms of absolute population gains, with 5 Florida metros among top go-to spots. Although Collier County wasn't one of them, three of those go-to spots are on Florida's south Gulf Coast very close to us.

Rising mortgage rates reduced buyer demand overall, but they've had little impact on where buyers wish to move. In some cases, buyers moving from high-cost metropolitan areas, such as the San Francisco Bay area, can compensate for higher interest rates by buying a home in less costly metro areas, such as exist in many parts of Florida. High rates don’t impact those buyers as much because they’re paying cash for a cheaper house and possibly even pocketing some proceeds from selling a home in a more expensive area. Additionally, some relocating home buyers have a non-negotiable reason for their move, such as a better job or to be closer to family. High rates are less likely to deter those buyers than ones simply considering a different house within the same town.

Buyers moving to a new metro

Of the buyers nationwide seeking a home, one in four (25.1%) looked to relocate to a new metro in February. A year earlier, it was 22.9%. Before the pandemic, it was roughly 18%. For state-to-state movers, five of the top 10 go-to destinations are in Florida.

Top 10 go-to metro areas

1. Miami

2. Phoenix

3. Las Vegas

4. Sacramento, California

5. Tampa

6. Orlando

7. Cape Coral

8. Dallas

9. North Port-Sarasota

10. Houston

Popularity is defined as net inflow – how many home shoppers moved into an area less the ones who moved out of that area.

The typical home in popular go-to destinations is less expensive than the typical home they want to leave behind. The typical Miami home sold for $485,000 in February, for example, compared with $640,000 in New York, the most common origin for its incoming home buyers. The average closing price in Collier County last month, by comparison, was $600,000, but that varies greatly by location. Homes closer to the water go for more, while homes away from the water go for less.

Top 10 move-out metro areas

1. San Francisco

2. New York

3. Los Angeles

4. Washington, D.C.

5. Chicago

6. Boston

7. Seattle

8. Denver

9. Hartford

10. Portland

Of course, we're a bit biased, but we think Collier County, particularly southwest Collier County, is the best place to live on Florida's Gulf Coast - even better than Tampa, Sarasota, or Cape Coral, as nice as those communities are. Contact us to find out why.