Florida Again Dominated Sales of U.S. Homes to Foreign Buyers

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

Florida again topped all other U.S. states in the sales of U.S homes to international buyers over the 12-month period ended March 2012, based on a study by the National Association of Realtors (NAR). Florida accounted for 26% of all U.S. home sales to the international market over the said period. It surpassed the second most popular market, California, by 15 percentage points in market share. California accounted for 11% of total international sales.

The other popular states among foreign buyers were Arizona and Texas, each accounting for 7%; New York and Georgia, each accounting for 4%; and Nevada, accounting for 2%. These 7 states accounted for 61% of all U.S. home sales to international buyers over the said 12-month period.

Most Popular States Among Foreign Home Buyers

State                        Market Share

Florida                      26%
California                   11%
Arizona                       7%
Texas                           7%
Georgia                       4%
New York                   4%
Nevada                        2%

A total of $82.48 billion worth of U.S. homes were sold to foreigners in the 2011 to 2012 period. This amount represented an increase of 24.22% from the $66.4 billion worth of homes sold in the previous 12-month period. Foreign buyers refer to buyers who are citizens of other countries and to buyers holding temporary visas or who have recently migrated to the U.S.

Florida is the favorite of buyers from South America, as South Americans like the cultural diversity of Florida cities. Canadians also prefer Florida because of its sunshine and beaches, among other reasons. It has also been observed that an increasing number of Germans are buying properties in Southwest Florida.  The study also found, just like in previous surveys, that foreign buyers gravitate towards states or cities where they have relatives or friends, or which were recommended by them, or which are nearer to their countries.

Among all foreign buyers, the Canadians posted the biggest purchase total, accounting for 24% of foreign sales. The Chinese were next, accounting for 11%.  Third were the Mexicans, accounting for 8%, and the East Indians and the British, accounting for 6% each. The Chinese posted a strong growth rate, increasing their market share by 2 percentage points.

Here are some significant findings from the NAR study of foreign home sales data over the 12-month period ended March 2012:

1.  Sixty-two percent of foreign sales were paid in cash.
2. The average price of homes sold to foreigners was $400,000, far higher than the average price of homes sold to U.S. residents.
3. Fifty-two percent of foreign buyers preferred homes located in suburban areas.
4. Sixty-six percent purchased detached single-family homes.
5. The three top reasons for purchasing a home were using the home as primary residence, as vacation property, and as rental property.

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