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International Buyers Are Flocking to South Florida – $7.1 Billion Spent in 2017 Alone

International Buyers Are Flocking to South Florida - $7.1 Billion Spent in 2017 Alone

If you’re looking to sell your home, its time to start thinking far and wide; international home buyers are on the rise. According to the latest 2017 MIAMI International Homebuyers Report–conducted by the Miami Association Of Realtors® and the National Association Of Realtors®–foreign buyers spent a massive $7.1 billion on South Florida residential homes and properties in 2017, up by an impressive $900 million since 2016. The 2017 MIAMI International Homebuyers report includes data from the Miami-Dade, Broward, Palm Beach and Martin counties; ranking the transactions by country of origin and taking note of important foreign buyer characteristics..

MAJOR SURVEY RESULTS FOR SOUTH FLORIDA

  • Foreign buyers purchased $7.1 billion of South Florida residential properties last year, up from $6.2 billion in 2016.
  • Foreign buyers accounted for 29 percent of Florida’s $24.2 billion of international dollar sales volume.
  • International buyers purchased 15,400 properties – a 41.3 percent increase from one year ago (10,900).
  • Foreign buyers accounted for 35 percent of MIAMI’s closed sales and 24 percent of Florida international sales.

“International buyers continue investing in South Florida and Miami because they see the economic potential of America’s youngest major city,” said Miami broker George C. Jalil, the 2018 MIAMI chairman of the board.

If sunny skies, sandy shores, and crystal seas sounds like paradise to you, you’re not alone; Florida is the top U.S. destination for foreign buyers, amassing almost a quarter of the countries international sales (22 percent), as stated by NAR’s 2017 Profile Of International Activity In U.S. Residential Real Estate. More than half of all international home sales in Florida (53 percent) take place in Miami-Fort Lauderdale-West Palm Beach.

Nationwide, South Florida secured around 11 percent of all U.S. international home sales. Of that 11 percent:

  • 51 percent take place in Miami-Dade County
  • 32 percent in Broward (up from 27 percent in 2016)
  • 9 percent in Palm Beach (up from 4 percent in 2016)

Top Countries Investing in South Florida

  • Argentina (15 percent of South Florida foreign purchases)
  • Venezuela (11 percent)
  • Canada (11 percent)
  • Colombia (9 percent)
  • Brazil (8 percent)
  • France (4 percent)
  • Ecuador (4 percent)
  • Mexico (4 percent)
  • United Kingdom (3 percent)
  • Italy (3 percent)
  • Chile (3 percent)
  • China (3 percent)
  • Dominican Republic (3 percent)
  • Germany (2 percent)
  • Russia (2 percent)
  • To investor countries by county
  • Miami-Dade
  • Venezuela (12 percent)
  • Argentina and Brazil (9 percent)
  • Colombia (5 percent)
  • France (4 percent)
  • Ecuador

Broward County

  • Canada (12 percent)
  • Argentina (8 percent)
  • Brazil (6 percent)
  • Colombia (6 percent)
  • Venezuela (6 percent)

Palm Beach County

  • Canada (31 percent)
  • Brazil (15 percent)

MORE TO KNOW:

  • Statistics show that there is no shortage of foreign buyers, but just how much are they spending? Well, when it came down to price, South Florida international homebuyers spent a median of $339,300 for residential properties in 2017. In comparison, foreign buyers of Florida Realtors members had a median price of $259,400, while foreign buyers in the United States spent $302,300. Additionally, around 37 percent of foreign buyers noted that real estate prices are less expensive than their home country.
  • Cash or credit? About 66 percent of all 2017 international residential transactions in South Florida were made in all-cash, down from 72 percent in 2016.
  • We know how much they’re buying, how much they’re spending and where, but what kind of properties attracted international buyers the most? Survey results show that South Florida foreign buyers prefer condominiums (55 percent) in the central/urban areas (57 percent), which they intend to use mainly as residential rental, vacation home or both (70 percent).
  • For some, Florida is a dream turned reality; about 5 percent of South Florida foreign buyers purchasing local homes without ever visiting Florida. About 18 percent purchased with just one visit to Florida; 31 percent purchased with two visits; 17 percent bought after visiting Florida three times.

As you can see, Florida’s foreign buyer market is thriving by exponential margins, with sales increasing by $900 million from 2016-2017 alone. So what does this mean for you as a seller? By being aware of the market for international buyers, you can put yourself ahead of the game by working with a knowledgeable, well connected, realtor. According to NAR’s 2017 Profile of International Activity in U.S. Residential Real Estate, “Personal contacts, previous clients, and business contacts accounted for 72 percent of referrals or leads”. This emphasizes the importance of a real estate agent who has the proper resources, tools, and connections to broadcast your property to the widest array of potential buyers. For more detailed information on my marketing strategy, please Request To See My Listing Presentation.