Increase in International Buyers helps Florida SellersSep 21st, 2010 | By Bea Weiss, Real Estate Consultant, Attorney | Category: Blog, International
Slightly more than half of foreign buyers (51 percent) purchased a detached single- family home, compared to 78 percent among all buyers nationally. More than one third (37 percent) of foreign buyers purchased a condo, 11 percent purchased a townhouse or row house, and the remaining 1 percent purchased some other type of home.
While there are a number of factors that have contributed to the decline in sales nationally and in Florida specifically, one significant countervailing force has been the growing importance of foreign home buyers. Foreign buyers recognize U.S. real estate as a desirable, profitable and secure investment. In addition, the weak dollar has made U.S. real estate an even more attractive investment for foreign buyers.
Foreign buyers are especially drawn to Florida because the state is viewed as a desirable location, making it a top destination for buyers seeking a second home or investment property. According to a survey of conducted by the Florida Association of REALTORS® 11 percent of foreign buyers that purchased a home in Florida bought a new home, while the remaining 89 percent purchased a previously-owned home.
Region of Origin of Foreign Home Buyers
According to the 2009 Profile of Home Buyers and Sellers, 92 percent of all home buyers used mortgage financing to purchase their home. Among recent foreign buyers in Florida, use of mortgage financing was less frequent. Overall, 19 percent of foreign buyers financed their home with a mortgage while 81 percent paid cash with no mortgage financing.
All cash (no mortgage financing) 81%
With mortgage financing 19%
Buyers from Western Europe brought even more cash to the table:
All cash (no mortgage financing) 88%
With mortgage financing 12%
Half of foreign buyers purchased a property to use exclusively as a vacation home. About a fifth (21 percent) purchased a home to be used as a rental property. Given the limitations on the length of time that foreign buyers may be able to personally use their property, 24 percent of sales were for a dual use – as a vacation home for the buyer’s family and friends and as a rental property at other times.
With 13 % of Internationals buying in the Bradenton / Sarasota area our area ranked #3 Florida wide after Orlando (19%) and Miami (17%).
If you are interested in selling your home, be sure to get the best international exposure possible.
Call us today @ 941.866.1666 for a free consultation.