International Buyers and the Impact on Florida

Global Changes and Real Estate

International buyers sales declined during the past year due to a strong dollar, concern over the global economic outlook and certainly the rising prices. International buyers declined by 30% in Florida. The strength of the US dollar has made the price to purchase a home in the US out of reach for many international buyers.

Even with the decline, Florida real estate is still doing well as US purchaaes increased due to the move from so many in the Northeast. 

Even with the decline, Florida still is a top destination for international buyers. South Florida attracted 53% of the international buyers in 2018-2019. 9% of all Florida purchases included an international buyer. 

From July 2018 to July 2019, the dollar strengthened against the Chinese yuan  (2.5%), euro (4.2%), British pound (5.6%), Mexican peso (0.3%) and Indian rupee (0.1%). But it weakened slightly against the Canadian dollar (-0.2%), and the Brazilian real (-1.1%), allowing residents of those countries to buy a bit more home than they could before. In some countries, slowing economic growth has also put a damper on real estate investing.

Top 5 International Countries Purchasing

• Canada: $3.3 billion in purchases (17% of all foreign buyers)
• Brazil: $1.6 billion in purchases (9% of all foreign buyers)
• Argentina: $1.3 billion in purchases (10% of all foreign buyers)
• Venezuela: $0.9 billion in purchases (10% of all foreign buyers)
• Colombia: $0.8 billion in purchases (7% of all foreign buyers)

Top 5 Areas For International Buyers

• Miami-Ft. Lauderdale-West Palm Beach (53% Of foreign buyers)
• Orlando-Kissimmee-Sanford (11% Of foreign buyers)
• Tampa-St. Petersburg-Clearwater (7% Of foreign buyers) 
• Cape Coral-Ft. Myers (6% Of foreign buyers)
• North Port-Sarasota-Bradenton (5% Of foreign buyers)

IImpact of nternational Buyers 

• International buyers purchased 36,400 homes which is 9% of all sales. This was a 30% decrease during a 12 month period.
• 71% of the international buyers have their primary home abroad. 
• 67% of international buyers paid cash for their Florida home.
• 70% of international buyers plan to  use the property for vacation, residential rental, or in some cases both.
• 43% of itnernational buyers wanted a property that was maintenance free therefore purchaswed a condo or co-op unit.

Understanding the changes to the international real estate market is key when selling a home in Florida. 

• 94%: of international buyers had visited Florida at least prior to buying.

Reference:

The 2019 Profile of International Residential Real Estate Activity in Florida is available on Florida Realtors’ website.