What International Buyers are Looking for in the Florida Market
International Real Estate
In Florida Realtors®’ report on the state's foreign buyer and seller transactions, they found a small slowdown in international activity in Florida, due mainly to a tight home inventory and rising property values.
The Reason Behind the Slow Down
This was due to competition between foreign and U.S. buyers. The competition was caused by mortgage rates remaining relatively low compared to historic values, and the large supply of buyers, both foreign and domestic, while the number of homes for sale remained relatively small.
The other challenge for many international buyers include exchange rate. These were responses coming from foreign buyers from selected countries, notably Venezuela and Brazil.
Where are International Buyers Purchasing?
While foreign buyers purchased property across the state, most foreign buyers purchased in five metropolitan areas of Florida. This includes the Miami-Fort Lauderdale-West Palm Beach (54 percent), Orlando-Kissimmee-Sanford (9 percent), Tampa-St. Petersburg-Clearwater (9 percent), North Point-Sarasota-Bradenton (5 percent), and Cape Coral-Fort Myers (5 percent).
2017 vs 2018 Statistics
There was a 5% decline between 2017 and 2018's report. Foreign buyers purchased $22.9 billion of Florida’s existing detached single-family, townhomes, and condominiums during the reference period (Versus 2017's $24.2 billion).
Florida’s foreign buyer purchases account for 19 percent of the volume of sales in 2018 (21 percent in 2017). Compared to the national share of eight percent, Florida’s foreign buyers still account for a larger fraction of the dollar volume of existing-home sales.
International buyers are very important to Florida. We often feel the shifts in international buyers first as it is 13% of our market vs 5% nationally.
Characteristics of Foreign Buyers
Latin American and Caribbean buyers account for 36 percent of foreign buyers in Florida. Followed by Canadians at 22 percent, Europeans at 19 percent, and Asians at 11percent.
International buyers ilike homes that make a statement to their family and friends at home. Their average sales price is higer than the typical buyer as a result. Most foreign buyers purchased with cash. This can be a great plus for local sellers.
53 percent of foreign buyers had a preference for townhouses or condominiums while only 43 percent purchased a detached single-family home. Three percent purchased residential land and another three percent purchased other types of properties.
Nearly half of foreign buyers purchased in a suburban or small town/rural area. With 93 percent of the buyers visiting Florida at least once before purchasing a property.
A Proven International Strategy
Treu Group Real Estate has a proven strategy to help buyer find their dream home.