Miami International Buyer Activity Spikes
International buyers increasingly play a major role in the strengthening of South Florida’s real estate market and economy. Now the latest data regarding foreign buyers in Florida reveals South Florida has seen a spike in international activity over the last year. Foreign buyers have boosted the Miami real estate market unlike any others in the U.S., resulting in an all- time record sales year in 2011, subsequent double-digit price appreciation eight months earlier than experts predicted, and now a shortage of housing inventory.
This year, National Association of Realtors (NAR) research again ranked Florida the top state in the nation for foreign buyers with 26 percent of all international sales. While Florida’s market share decreased slightly year- over-year, Miami is experiencing more demand from international buyers and investors.
The just released 2012 Profile of International Home Buyers in Florida indicates approximately 19 percent of all Florida sales are to non-resident foreigners.
In contrast, international sales only represent 4.8 percent of all U.S. transactions, including both non-resident (2.4 percent) and resident (2.4 percent) foreigners. Total residential sales in Florida for the 12 months ended June 2012 were $58 Billion, and sales to foreigners were estimated at $10.7 Billion.
South Florida: Global Hotspot
South Florida continues to attract the highest percentage of foreign buyers in the state, with a growing market share. Nearly 43 percent of all international sales in Florida occurred in South Florida, which is almost 13 percent higher than the previous year. Miami-Miami Beach alone accounted for 31.3 percent, followed by Fort Lauderdale with 11.6 percent.
The Orlando/Kissimmee market ranked third with only 8.9 percent of international sales followed by Bradenton-Sarasota-Venice with 8.1 and Palm Beach with 6.5. The Tampa-St. Petersburg- Clearwater area, which ranked third the previous year with 11 percent, dropped to seventh place with 5.6.