What International Buyers are Looking for in the Florida Market
ORLANDO, Fla. – Nov. 26, 2019 – Florida Realtors® has released its latest report on the state's foreign buyer and seller transactions, the 2019 Profile of International Residential Real Estate Activity. The one year-report – from August 2018 through July 2019 – found a similar trend to the nation as a whole – declines driven by the strong dollar and a worsening global economic outlook outside of the U.S.
The U.S. dollar has strengthened against other major currencies since 2018, making a U.S. home purchase less affordable. From July 2018 to July 2019, the dollar strengthened against the Chinese yuan (2.5%), euro (4.2%), British pound (5.6%), Mexican peso (0.3%), Indian rupee (0.1%). It slightly weakened against the Canadian dollar (-0.2%), and the Brazilian real (-1.1%). A stronger dollar means that foreign buyers spend more of their local currency to purchase U.S. property.
Rising economic growth improves the spending capability of foreign buyers to purchase a property. The world economy expanded at a slower pace of 3.6% in 2018 and is projected to grow even less at 3.3% through 2019. Growth is slowing in the United Kingdom (1.2%), China (6.6%), and Mexico (1.6%), but is slightly recovering on a region-wide basis in Latin America and the Caribbean (1.4%).
Here are highlights from the 2019 report:
Dollar volume of Florida’s existing homes purchased by foreign buyers during August 2018–July 2019, which is 12% of the dollar volume of Florida’s existing home sales (30% decrease from $22.9 billion during the prior 12-month period)
Number of existing homes purchased in Florida by foreign buyers, which is 9% of existing-home sales (30% decrease from 52,000 during the prior 12-month period)
Share of foreign buyers whose primary residence is abroad (Type A)
Florida’s top 5 foreign buyers
- Canada ($3.3 B)
- Brazil ($1.6 B)
- Argentina ($1.3 B)
- Venezuela ($0.9 B)
- Colombia ($0.8 B)
Top 5 foreign buyer destinations
- Miami-Ft. Lauderdale-West Palm Beach (53% of foreign buyers)
- Orlando-Kissimmee-Sanford (11%)
- Tampa-St. Petersburg-Clearwater (7%)
- Cape Coral-Ft. Myers (6%)
- North Port-Sarasota-Bradenton (5%)
Foreign buyer median purchase price ($246,479 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
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 2019 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.