What International Buyers are Looking for in the Florida Market
ORLANDO, Fla. – Dec. 4, 2020 – Florida Realtors® has released its latest report on the state's foreign buyer and seller transactions, the 2020 Profile of International Residential Real Estate Activity. The one year-report – from August 2019 through July 2020 – only begins to illustrate the impact of the coronavirus pandemic that plunged the global economy into a global recession.
The International Monetary Fund projects the world economy to contract by 4.9% in 2020. Larger contractions are expected for Canada (-8.4%), the Latin American region (-8.4%), the Euro Area (-10.2%), the United Kingdom (-10.2%), and the United States (-8%).
The travel ban imposed by countries to control the spread of coronavirus has decimated the travel and tourism industry. During the period August 2019-July 2020, tourist arrivals fell by a third, from 78.8 million to 49.9 million. Tourist arrivals from Canada, Latin America, and Europe―the areas where most of Florida’s foreign buyers come from―contracted by about 40%.
Here are highlights from the 2020 report:
Dollar volume of Florida’s existing homes purchased by foreign buyers during August 2019–July 2020, which is 11% of the dollar volume of Florida’s existing home sales (2% decrease from the prior 12-month level of $16 billion)
Number of existing homes purchased in Florida by foreign buyers, which is 8% of existing-home sales (7% decrease from the prior 12-month period level of 36,400)
Share of foreign buyers whose primary residence is abroad (Type A)
Florida’s top 5 foreign buyers
- Canada ($3.2 B)
- Brazil ($1.4 B)
- Venezuela ($0.9 B)
- Argentina ($0.6 B)
- Colombia ($0.5 B)
Top 5 foreign buyer destinations
- Miami-Ft. Lauderdale-West Palm Beach (47.3% of foreign buyers)
- Tampa-St. Petersburg-Clearwater (11.0%)
- Orlando-Kissimmee-Sanford (9.7%)
- North Port-Sarasota-Bradenton (6.9%)
- Cape Coral-Ft. Myers (4.7%)
Foreign buyer median purchase price ($263,400 for all Florida existing-homes sold)
Foreign buyers who paid all-cash
Foreign buyers who intended to use the property for vacation, residential rental, or both uses
Foreign buyers who purchased condo or co-op units
Percent of foreign buyers who visited Florida at least once before making a purchase
Percent of foreign buyers who were referrals of personal and business contacts and former clients, or who were former clients
Respondents who reported clients (either non-U.S. citizen or U.S. citizen) seeking to purchase property abroad
Percent of respondents who speak a language other than English
Percent of respondents who “have not had problems” working with foreign buyers
Click the blue button below to download the most recent report, the 2020 Profile of International Residential Real Estate Activity in Florida. If you are visually impaired and need assistance reading the full report, please contact Erica Plemmons at 407.438.1400.