REAL ESTATE INTERVIEW
Key role Local realtors are pivotal to the economic viability of communities
Karen Johnson President – Broward, Palm Beaches & St. Lucie Realtors® with the new virtual way of doing business, opening up opportunities for purchasers to acquire real estate outside of their local areas. 2020 was an incredibly strong year for the real estate market. Although inventory is lower by over 58% in 2021 year-on-year, volume has increased by 75%. This is always a good indicator that prices are going to rise and indeed they have. Median prices have increased over 15.5% and the average price rose over 33% from the same time last year.
How would you characterize your group’s impact on the region last year? In 2020, our local realtors played a key role in maintaining economic viability in our communities. The average home sale infused $90,300 into our local Florida economies. In 2020, the real estate industry accounted for 23% of the gross state product in Florida. This was a key factor in our local communities continuing to have resources to provide much needed assistance and services to those who otherwise would not have been able to sustain their families and businesses during these difficult times. In 1Q21, we saw record sales in Broward communities. Buyers from all over the world became more focused on purchasing real estate in South Florida, and Broward County was one of the centers of that focus. The world at large quickly became increasingly comfortable 78
| Invest: Greater Fort Lauderdale 2021 | REAL ESTATE
What issues is your association advocating for? Advocacy is one of our main objectives. We are among the largest associations in the country and our voices are huge when shaping legislation. One of the reasons we were deemed essential is because of our political action and our preponderant role in the economy. One of the top issues we are focusing on is Senate Bill 2512, the Housing Trust Fund, relating to the documentary stamp tax distribution. What we have been advocating for is a reallocation of that resource from the general funds toward vital infrastructure needs — water, affordable housing, to name a few. A recent win includes the signing of a business rent tax by Gov. DeSantis. Florida is the only state in the country that has a tax on business rents, directed at businesses that rent a commercial space. It was reduced from 5.5% to 2%. That means companies relocating to Florida will not have this additional tax as soon as they set up shop. Small businesses can concentrate on expanding and employ more people instead of paying this tax. Lacking a state tax, we know money has to come from somewhere. This is why we are going to have a sales tax bill to ensure online retailers collect the required sales tax on purchases made by Floridians. This will result in an estimated $1 billion a year in revenue for the state.
