Florida Keys Real Estate Blog

WASHINGTON - May 19, 2011 - The U.S. continues to remain a top destination for foreign buyers as international purchases surged by $16 billion this year - one of the highest increases in recent years - according to the National Association of Realtors®' 2011 Profile of International Home Buying Activity.

According to the survey, total residential international sales in the U.S. for the year ending March 2011 equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international existing-home sales in the U.S. reached $1.07 trillion.

Florida had 31 percent of total international transactions this year, the most of any state. California had 12 percent, Texas had nine percent, and Arizona rounded out the top four with six percent of international transactions.

"The U.S. has always been a desirable place to own property and a profitable investment," says NAR President Ron Phipps. "In recent years, we've seen more and more foreign buyers coming here to take advantage of low prices and plentiful inventory. In addition to the advantageous market conditions, Realtors in this country have a global perspective and experience in working with clients from different cultures and real estate practices, helping them bring value to their international clients."

Historically, foreign buyers have been attracted to property ownership in the U.S. for a number of reasons. U.S. homes are generally less expensive than comparable foreign properties, homes in this country are viewed as a secure investment, and the U.S. market offers rental opportunities and long-term appreciation potential.

More recently, Realtors have noticed new factors motivating foreign buyers. Many U.S. colleges and universities have a significant number of international students, and some foreign families are purchasing U.S. properties in college areas so their child has a place to live. Another source of international demand is foreign executives temporarily working in the U.S., some of whom prefer to purchase a residence instead of renting.

"Besides the strength of the dollar and the general economic trends in the U.S., international buyers are also recognizing the benefits of homeownership in this country, especially in the case of recent immigrants," says Phipps. "Many foreigners perceive owning a home here as an important accomplishment in their efforts to become established in this country."

Recent international buyers came from 70 different countries, up from 53 countries in 2010. For the fourth consecutive year, Canada was the top country of origin, with 23 percent of sales to foreigners. China was second most popular, with nine percent of international sales this year. Tied for third were Mexico, the U.K. and India. Argentina and Brazil combined reported an increase in foreign sales with five percent, up from two percent in 2010. The top five countries of origin accounted for 53 percent of international transactions in 2011.

The average price paid by an international buyer was $315,000 compared to the overall U.S. average of $218,000. However, 45 percent of international purchases were under $200,000. This price segment has grown significantly over the years, most likely due to overall price declines in the U.S., as well as the strengthening of some foreign currencies.

Almost every state had at least one international transaction in the past year. The four states with the heaviest concentration of international buyer activity have remained the same over the past five years.

Foreign buyers are primarily interested in three factors when deciding where to buy in the U.S.: proximity to their home country, convenience of air transportation, climate and location. Generally, the East Coast attracts European buyers. The West Coast remains popular for Asian purchasers. Mexican buyers are traditionally attracted to the Southwestern markets. Florida is most popular among South Americans, Europeans and Canadians.

Similar to last year, 28 percent of Realtors in 2011 reported working with an international client. Fifty-five percent served at least one foreign client, while the bulk of international transactions were handled by a small percentage of Realtors. Only eight percent of members obtained 50 percent or more of their transactions from international clients.

Sixty-one percent of foreign buyers purchased a single-family home while 36 percent bought a condo/apartment or townhouse.

In addition, 62 percent of international purchases were reported as being all cash. This percentage is significantly higher than all-cash purchases for domestic buyers, mostly due to the differences in international credit reporting standards.

Financing challenges continue to be a major hurdle for international buyers, with 32 percent reporting these as their reason for not buying a home. Many Realtors reported that their foreign clients faced mortgage financing issues, as well as problems with legal, tax and immigration laws.

To download the full report, visit NAR's website.

© 2011 Florida Realtors®

I knew the market was leveling out.... and now the reports are supporting my theory...  I was afraid as I listened to the nay sayers that we were in for another landslide and negative downturn.  But this report is totally encouraging...  http://www.realtor.org/rmodaily.nsf/pages/News2010091701?OpenDocument

I have been syaing for 6 months now that we are leveling out.  Now it is coming to fruition.  Just like I saw the REO BPO market beginning to boom.... I feel pretty good in my predictions.. OK be cautious   they are predictions but greenspan made a millions on predictions right...good for the economy...

 

 

 

The bikers are streaming down the highway headed south for the poker run.  How great for Keys business.  With all the new Key Largo Foreclosures as well as the Islamorada Foreclosures maybe a few Florida Keys Real Estate deals can be put together. The local keys restaurants are happy I know to see them pull in.  I hope fun is had by all wishing I had a bike to ride...

So Real Estate and the Florida Keys.  We here (as well as across the nation) found out just how closely industries are intertwined when the markets crashed.  For the Florida Keys we saw a dramatic stop in the Real Estate industry over 5 years ago.  The hurricanes breezed through at the time and left no real physical damage for us in the Florida Keys but the economic impact it has had on those who live and earn a living here has been far reaching.

The professionals who work in the Florida Keys Real Estate Industry were hard hit.  Then the snow ball effect began soon after.  We as Realtors stopped print advertising as our reserves dried up.  We cut back on all aspects of our businesses; laying off staff and letting go of the agents that just weren't producing.  Real Estate companies starting charging for all the services they once provided for their agents.  The sellers were feeling the crunch as well as the stock market went down and the values of the homes began to turn upside down.  The intances of mortgage fraud were just becoming apparent as we began sifting through the ashes of the Florida Keys Economic Destruction.

Now in 2010 we are seeing record number closings but they are mostly bank owned properties and the prices are at an all time low. Who would have guessed a Florida Keys Canalfront CBS Home going for under $300,000.  Well we are in the thick of it and it is going to last a long time.  The buyers of these homes will thankfully start hiring the companies that used to make a living fixing up these properties.  As we unmask the destruction of foreclosure and the damage the previous owners have inflicted on the properties left to the banks; local craftsmen stand to have a very lucrative come back.

It would be nice to hear some of the positive things happening as we recover here in the Florida Keys.  If you have a story to tell or something to tell about how you have received good fortune from the back side of this Florida Keys economic disaster recovery then add a comment below or send them to This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will be glad to post them.  Any suggestions on how to continue to help grow our Florida Keys Economy are welcomed as well.