Total sales to international real estate buyers in the U.S. have increased substantially over last year say the National Association of Realtors® (NAR) and Florida is leading the way. According to the Association’s statistics, from April 2013 to March 2014 international buyers spent $92.2 billion dollars on real estate in the U.S. That represents an increase of 35% over the previous year and Florida’s share of that pie was 23% or $21 billion dollars.
Warm Weather And Proximity To Family Attract Buyers To The Florida Real Estate Market
The reasons for this substantial increase include affordable home prices, favorable exchange rates and rising affluence abroad. The factors that influence where people buy in the U.S. are varied and include the presence of family, proximity to the home country, job opportunities and climate. Several of those elements work in favor of Florida, with climate being a factor for the large number of Canadian buyers and proximity and family influencing Latin American buyers.
Sarasota Real Estate Market Fourth In Florida With Foreign Buyers
According to new figures released by Florida TaxWatch, these two groups account for 62% of all foreign purchases. Florida TaxWatch’s June 2014 report, Buying In: An Analysis of International Homebuyers In Florida, also has some good news for those of us working in the Sarasota real estate market. According to their figures, the Bradenton-Sarasota-Venice area is the fourth most popular in the state with foreign buyers, who account for almost 7% of our market.
Sarasota Is Top Destination For British Home Buyers
While statewide, Latin Americans are the top buyers, they actually only represent about 2% of foreign buyers of Sarasota homes. Canadians are still our top customers, accounting for 51% of all foreign purchasers, with Western Europeans accounting for another 39%. Amongst the Europeans, Germans and Brits account for 25% of all foreign buyers. In fact, Sarasota is the top destination in the state for British real estate investors.
Foreigners Are Cash Buyers Of Suburban Homes
Some of the other interesting facts to come out of the NAR’s research include the fact that almost 60% of foreign sales are all cash purchases, due to the difficulties for foreigners in obtaining a mortgage. Other findings include the fact that most (65%) sales are for single-family homes and suburban areas are considerably more popular than urban areas. Somewhat surprisingly, only 13% of sales were in resort areas.
International Buyers Prefer To Work With Specialized Realtors®
The research of the NAR also highlighted the fact that working with international buyers is a fairly specialized business. While 28% of Realtors® surveyed indicated they had had foreign clients, only 4% reported 11 or more international transactions in a year. Buying in the U.S. can be complicated for international clients and Realtors® who have completed specialist training can offer clients real value in terms of understanding the unique challenges of their situation.
Brandy is a Certified International Property Specialist and a member of Keller Williams Global Property Specialist Team. If you’re an international buyer interested in the Sarasota real estate market, call Brandy toll free on 877.308.6311 or 941.284.4474 / 941.404.4737 from overseas and put her expertise to work.