MIAMI – Feb. 9, 2018 – Foreign homebuyers spent $900 million more on South Florida homes and purchased more local residential properties in 2017 than they did in 2016, according to the new 2017 MIAMI International Homebuyers Report conducted by the Miami Association of Realtors® (MIAMI) and the National Association of Realtors® (NAR). The sixth-annual survey includes data from Miami-Dade, Broward, Palm Beach and Martin counties. It ranks transactions by countries of origin and highlights key characteristics of foreign buyers.
Survey results for South Florida
Foreign buyers purchased $7.1 billion of South Florida residential properties last year, up from $6.2 billion in 2016.
Foreign buyers accounted for 29 percent of Florida’s $24.2 billion of international dollar sales volume.
International buyers purchased 15,400 properties – a 41.3 percent increase from one year ago (10,900).
Foreign buyers accounted for 35 percent of MIAMI’s closed sales and 24 percent of Florida international sales.
“International buyers continue investing in South Florida and Miami because they see the economic potential of America’s youngest major city,” said Miami broker George C. Jalil, the 2018 MIAMI chairman of the board.
Florida is the top U.S. destination for foreign buyers (22 percent of all sales), according to NAR’s 2017 Profile of International Activity in U.S. Residential Real Estate. More than half of all international home sales in Florida (53 percent) occur in Miami-Fort Lauderdale-West Palm Beach, according to the Florida Realtors 2017 Profile of International Residential Real Estate Activity in Florida.
Nationwide, South Florida secures about 11 percent of all U.S. international home sales. Of that 11 percent:
51 percent take place in Miami-Dade County
32 percent in Broward (up from 27 percent in 2016)
9 percent in Palm Beach (up from 4 percent in 2016)
Top countries investing in South Florida
Argentina (15 percent of South Florida foreign purchases)
Venezuela (11 percent)
Canada (11 percent)
Colombia (9 percent)
Brazil (8 percent)
France (4 percent)
Ecuador (4 percent)
Mexico (4 percent)
United Kingdom (3 percent)
Italy (3 percent)
Chile (3 percent)
China (3 percent)
Dominican Republic (3 percent)
Germany (2 percent)
Russia (2 percent)
To investor countries by county
Venezuela (12 percent)
Argentina and Brazil (9 percent)
Colombia (5 percent)
France (4 percent)
Italy (3 percent each)
Canada (12 percent)
Argentina (8 percent)
Brazil (6 percent)
Colombia (6 percent)
Venezuela (6 percent)
Palm Beach County
Canada (31 percent)
Brazil (15 percent)
Additional survey highlights
South Florida international homebuyers spent a median price of $339,300 for residential properties in 2017. In comparison, foreign buyers of Florida Realtors members had a median price of $259,400, while foreign buyers in the United States spend $302,300.
About 66 percent of all 2017 international residential transactions in South Florida were made in all-cash, down from 72 percent in 2016.
South Florida international home buyers prefer condominiums (55 percent) in the central/urban areas (57 percent), which they intend to use mainly as residential rental, vacation home or both (70 percent).
About 37 percent of buyers say real estate prices are less expensive than their home country.
About 5 percent of South Florida foreign buyers purchased local homes without even visiting Florida. About 18 percent purchased with just one visit to Florida; 31 percent purchased with two visits; 17 percent bought after visiting Florida three times.
About 57 percent of MIAMI members work with international buyers, almost double the national figure of 30 percent.
© 2018 Florida Realtors®