Florida Homes for Sale Snapped Up by Foreign Buyers

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Real Estate

Nearly one-third of all existing homes sold to foreign buyers in the first quarter of 2011 were homes in Florida, according to the National Association of Realtors’ report on international home buying activity in 2011. Of the total sales, 31 percent were Florida homes for sale.

Over the 12-month period ended March 2011, about $41 billion worth of U.S. homes were bought by foreign buyers, and an additional $41 billion worth of residential properties were purchased by new immigrants — those who have just arrived in the U.S. within the last two years.

All in all, a total of $82 billion worth of U.S. homes were purchased by foreigners during the 12-month period. This represented an increase of more than 24 percent from the $66 billion posted in 2010.

The states most preferred by foreign buyers in the first quarter were the following:

State	Share in Total Foreign Sales
Florida	31 %
California	12 %
Texas	9 %
Arizona	6 %
Illinois	3 %
New York	3 %
Georgia	2 %
Hawaii	2 %
Nevada	2 %
New Jersey	2 %
North Carolina	2 %
Pennsylvania	2 %
Tennessee	2 %
Virginia	2 %
Washington	2 %

Since 2008, Florida has been topping U.S. home sales to foreigners. Its 31-percent share in the first quarter was a sharp improvement from its 22-percent share in 2010 and from its 23-percent share in 2009. It was California which topped U.S. home sales to foreigners in 2007, but its hare was much lower, which was only 16 percent.

A big percentage of foreign buyers in the first quarter this year were from Canada, accounting for 23 percent of all international home buyers. These were the countries with the highest shares of home purchases by foreigners:

State	Share in Total Purchases
Canada	23 %
China	9 %
India	7 %
Mexico	7 %
U.K.	7 %
Argentina and Brazil	5 %
France	4 %
Germany	4 %
Japan	1 %
Russia	1 %

Canada has been topping home purchases since 2008, duplicating in this year’s first quarter its 23-percent share in 2010. Its share in 2008 was 24 percent and its share in 2009 was 18 percent.

Among the most interesting findings about home purchases by foreigners are the following:

• About 61 percent of foreign home buyers chose detached single-family homes.
• The average price paid for properties by foreign buyers was $315,000, higher than the nationwide average, which was $218,000.
• Pre-owned homes priced below $200,000 had the highest rate of sales growth in the international market.
• About 62 percent of all foreign purchases were paid in cash.
• Nearly 80 percent of NAR members reported that changes in the value of the U.S. dollar impact home sales.

Here’s a guide for non-U.S. residents interested in buying properties in Tampa, Florida.