International buyers have set their sight on Florida real estate. A stroll down busy streets or the beaches offers a glimpse into the variety of cultures that now call Florida home. Canadians, British, Brazilian and German citizen flock to Naples every year, yet a wider spectrum of nationalities are represented throughout the state.
According to the National Association of Realtors, in 2010 international buyers spent more than $ 12 billion on Florida Real estate. In June 2011 the National Association of Realtors surveyed Florida Realtors in order to assess the significance of foreign buyers in Florida.
The highlights:
- Approximately 25 percent of all sales in Florida are to foreigners.
- Nearly all sales are purchased with cash.
- Foreign buyers select homes above the median price $ 174,700.
- Foreign buyers are driven to purchase in Florida based on existing home values and the weak dollar as compared to their home currency.
- Residential foreign investment in Florida is derived from Canada , United Kingdom, Brazil and Venezuela.
- 49 % of Realtors reported an increase in international business between 2010 and 2011.
The U.S. housing market has suffered sharp decreases in property value due to the recession, foreclosures and consumer finances. While foreigner buyers may view reduced prices as the primary driver in seeking a property, what makes them choose Florida over other states?
Survey results outline the single most important factor influencing the purchase of a home in Florida is our most prized possession; Sunshine.
Source: NAR Florida International Survey. 08/2011
What types of homes do foreign buyers purchase?
In the U.S. market, single family homes accounted for eighty eight percent (88%) of national home sales in 2010. Thirty-nine percent (39%) of foreign buyers purchased a detached single- family home in 2011 as compared to fifty-one (51%) in 2010. In 2011 international buyers increased their affinity for condos ; forty-nine percent (49%) of buyers reported purchasing condos up from 37 percent (37%) last year. In comparison, sales of condos by Americans nationwide made up only twelve percent (12% )of the sales in 2010.
Source: NAR Florida International Survey. 08/2011
How much do foreign buyers spend on property in Florida?
Volatility in the U.S. housing market spawned by the troubled economy and foreclosures makes purchasing property in Florida an attractive option for foreign buyers. International buyers tend to purchase homes at prices above the national median price of $172,000 reported in 2010.
Source: NAR Florida International Survey. 08/2011
Do foreign buyers buy property in Florida as a rental investment?
While foreign buyers believe that purchasing property in Florida is a good investment, a significant number of owners intend to use this property as a vacation home for less than six months a year. Vacation owners over time may choose to place their vacation home on the rental market but at the onset foreign buyers seek a home in Florida for themselves.
Source: NAR Florida International Survey. 08/2011
Source: NAR Florida International Survey. 08/2011
The complete survey by NAR is available by clicking the following link.
http://www.floridarealtors.org/Research/upload/2011-FloridaInternationalSurvey-August-22-2011.pdf