From Florida Realtors
A study done by the National Association of Realtors in cooperation with Florida Realtors found that international real estate deals made up 9 percent of all Florida existing homes sales over a one-year period that ended in July 2013.
By dollar volume, international real estate transactions made up nine percent of sales over the same period.
The numbers come from an annual study conducted by NAR, the 2013 Profile of International Home Buyers in Florida. A total of 977 Realtors responded to this year’s survey. For the report, foreign buyers were defined as non-resident foreigners – individuals who purchase property in the United States but live in the country only part of the year – and who typically use the property as a rental unit, vacation unit or both.
For the 12 months ended July 2013, existing home sales in Florida – single-family homes, townhomes and condos – accounted for 327,350 transactions worth $74 billion. Of that total, there were 22,572 transactions worth $6.4 billion to foreigners.
By dollar volume, the international market made up 9 percent of total sales in Florida for the 12 months ended July.
Prices paid by non-resident foreign buyers tend to be higher than domestic buyers, though overall, international sales have been down due to the worldwide recessions, according to NAR.
Key survey points include:
• Two in three (63 percent) of Realtors in Florida have international clients, compared to the national average of 27 percent.
• 80 percent of surveyed Realtors said that international clients found Florida property less expensive than similar property in their home country. Overall, foreign buyers say the U.S. residential housing market provides a good value.
• 31 percent of respondents say Florida’s percentage of international clients has increased in the last five years, compared to 21 percent at the national level.
• Canadians lead the way (30 percent of total Florida international sales) as the largest source of buyers, followed by Venezuela (8 percent), Brazil (7 percent), and the United Kingdom (6 percent).
• International buyers focused most of their effort in Miami-Miami Beach (21 percent of international sales in Florida), Orlando-Kissimmee (14 percent) and Fort Lauderdale (9 percent).
• International buyers paid a median price of $216,477 for a home unit in Florida compared to the state’s overall median price of $144,074, and the U.S. median price of $187,483. In general, buyers from Brazil, Venezuela and Western Europe purchased above the median price.
• 84 percent of international transactions are cash sales.
• International buyers had a preference for detached single-family homes (47 percent of Florida foreign sales), followed by condominiums (34 percent) and townhouses (11 percent).
The complete survey is available on the research page of Florida Realtors’ website.