Americans, both local and out-of-state, are driving a pandemic induced rush in central Florida, which means British property-hunters need to be on the ball. It may also make sense to bag your Sunshine State home in time for Disney’s 50^th anniversary celebrations, which kick off in October. We get the low-down from an expat realtor.

Brits ready to buy a Disney home will welcome the favourable swing in the exchange rate but should be ready to tackle a fast-moving market, driven by domestic buyers and a shift in conditions.

The Sunshine State’s popularity with Americans has led to a 100 per cent rise in property sales in premier resorts in the space of just six months.

Similarly, since October 2020 rentals have picked up significantly so that bookings through North America’s largest hospitality management company, Vacasa, were up 200 per cent in March 2021 compared to March 2019 (the jump was even greater compared to March 2020).

“The last 13 months have shown the true strength of the domestic market in central Florida, as well as how resilient the Orlando area is as a destination, not only for tourism but for sport and residency too,” said realtor Garry Walmsley at Vacasa Real Estate.

“It’s easy to forget that 88 per cent of business into Orlando is domestic. Disney shut down for four months in 2020 and for a while was like a ghost town. But the number of visitors to Florida in 2020 still hit 86 million! Since October the property market here has been crazy. Right now (April 27^th) there is less than 3 weeks’ worth of inventory in central Florida and buyers often need to offer above the asking price.”

Domestic market

Home to Disney World and other famous theme parks, Orlando is the US’s number one holiday destination.

Restrictions on overseas travel prompted a surge in demand for rental homes from out-of-state American visitors, keen for a break away from their primary residences. Many have taken a step further and decided to relocate permanently to the Sunshine State, where lower taxes and a more affordable way of life complement the sunshine and world-class leisure attractions.

“Facilitated by the increased working from home opportunities, we’re seeing multi-generational families relocating from other States, including Texas and California,” said Mr Walmsley. “This is also driving demand for larger $1millon-plus properties.”

At the other end of the market, UK buyers with their heart set on a single-family home in an older community, where amenities are limited typically to a clubhouse and pool, may be surprised by current prices.

“Because properties in these communities suit lower budgets and typically have lower HOA fees, they are attracting domestic first-time buyers or institutional investors, who are benefiting from low mortgage rates and for now at least less competition from foreign buyers due to lockdown,” continued Mr Walmsley. “It does mean that prices are being pushed up. A typical entry-level price has risen from $250k to more than $300,000.”

Rentals

As Florida’s vacation rental market edges back towards more normal occupancy levels, Mr Walmsley notes a shift in what’s hot and what’s not.

“Future holiday bookings are starting to come back from the domestic market,” he said. “But now, rather than stay in hotels and have to mix with other people, holidaymakers are choosing to stay in private rental properties, with larger properties being especially popular.”

Meanwhile, properties with access to extensive resort-style leisure amenities, such as water parks, cinema, sports facilities, fitness centers and commercial/ dining outlets, are preferable to older communities without them, such as Highlands Reserve or Tuscan Hills.

“Most people aren’t able to visit the theme parks every day of their holiday so want fun things to do without having to leave their accommodation, resort or community,” explained Mr Walmsley. “This is especially so with Disney’s new reservation system causing delays for visitors waiting to enter the park, but provides a great pent-up demand for future visits.”

Virtual sales

Lockdown hasn’t stopped some British people from buying in Florida, thanks largely to technology.

“It’s surprised me how many people have put their faith in technology and bought remotely,” said Mr Walmsley. “I can’t remember another year when I’ve sold more properties to people I’ve not met in person. I’ve had British clients who have closed on properties and have never even been out here. Lockdown helped in one respect because it also meant properties were empty, which made virtual viewings easier to access.”

British people tend to buy in the Golden Triangle area, home to Davenport, Kissimmee and ChampionsGate where the best choice of short-term rental communities and resorts near Disney are located.

“I’m seeing requests with higher budgets now too,” added Mr Walmsley. “More British clients are spending in the $500,000-$600,0000 range, compared to $300,000 before.”

Exchange rate

A bonus for today’s British buyers is the return of Sterling to three-year highs against the dollar. Sterling has gained around 12 per cent in the past year, with the exchange rate moving from £1/$1.24 in April 2020 to £1/1.39 this year. For a $500,000 property, this represents a saving of more than £40,000 for a British buyer.