Florida Day Dreaming?

Vacation home / seasonal home shopping

Some of you might not know this, but I actually live in both Florida and Maine. I also manage properties and run real estate teams in Southern Maine and Southwest Florida.

If you’ve always dreamed of a “snowbird” or vacation home in Florida, it might be more achievable than you think. The market in Florida is currently more favorable for buyers, which could give you some leverage, while the Maine market is still favorable for sellers. Many people have used our Home Equity Calculator (in our seller tools) and found that they have substantial equity in their Maine homes. This is equity that could be used to finance a second home in Florida.

Today, I want to share a few insights with you-

Real estate markets are regional and seasonal – know your market!
Owning a Snowbird or Vacation Home (That Pays for Itself) Might Be Closer to Reality Than You Think!
Let’s dive into how the real estate markets in Florida and Maine have performed differently over the past year.

Florida:

Days on Market:

Increased by 39% to 57 days

Median Closed Price:

Decreased by 2% to $459,527

Inventory:

Rose by 49%

Maine:

Days on Market:

Increased from 8 to 12 days (+4 days)

Median Closed Price:

Rose from $371K to $399K (+7.5%)

Inventory:

Jumped from 2,914 to 4,742 units (+63%)

So, what do these numbers tell us?

Both states have seen a significant increase in inventory, but the effects have been quite different. In Maine, the rise in inventory hasn't slowed the market down. Demand remains strong, keeping the days on market under two weeks, and driving up sale prices by over 7%.

On the other hand, Southwest Florida has experienced a slowdown in demand. As inventory has grown, the days on market have increased to 57, compared to just 8 a year ago. If you're selling in Florida now, don't expect a 7.5% increase in sale price like you might in Maine; instead, prices are down by about 2%.

Understanding these regional variations can make a big difference if you're buying or selling. In Maine, as a seller, you can expect a quick sale with multiple offers and limited negotiation room. In Florida, sellers might face a longer sale period and need to be more flexible with negotiations.

So, how does this help you?

If you’re buying in Maine, focus on local trends rather than national ones. For those dreaming of owning a vacation or rental property in Florida, now might be a great time to explore your options.

Consider this: could you take out a line of credit on your Maine property to purchase a Florida home? Enjoy it for a couple of weeks each year and rent it out the rest of the time to cover the costs, including the equity line payment? Or perhaps you could buy the home you want to retire into now, start enjoying it sooner, and lock in your equity position in Florida

It all boils down to the numbers. Southwest Florida is known for its vacation rental locations with relatively predictable income. If you’re contemplating whether buying one of these properties makes sense for you, give me a call. Let’s chat about whether the math work in your favor.

Remember, real estate is highly regional. If you can leverage differences between markets to your advantage, you should absolutely do it!