What to Expect as Foreign Buyers Return to Florida
Many may have already seen international buyers returning to the real estate market, particularly buyers from Canada. The Foreign Exchange Rate for Canadian dollars coupled with higher prices may temper their buying for now.
Recently, buyers from South America are shifting from Miami to the West Coast of Florida for their home search. These trends and others will keep the West Central Florida market hopping in 2022.
Healthier Housing Market
A healthy, balanced market usually sees an appreciation of roughly 3% each year. In April, Realtor.com showed a remarkable 17.2% rise in home prices compared to the previous year, with October falling to 8.6%. Freddie Mac and the Mortgage Bankers Association predict total 2022 price increases in the 5-7% range, with CoreLogic forecasting price growth to slow to 2% by next September.
Tight Inventory May Feel Additional Squeeze
As the market begins to level out, international buyers are returning. Pandemic-related travel restrictions are easing in the U.S., and the real estate industry is preparing for a surge of international buyers across the state of Florida. Foreign buyers make up approximately 5% of the fiscal volume of sales in the state. With an increasing pool of buyers looking to purchase while inventory is at an all-time low, it likely will create an even more competitive bidding process.
Where Foreign Buyers Are Coming From
1. Canada ($1.8B)
2. Argentina ($0.9B)
3. Colombia ($0.8B)
4. Brazil ($0.7B)
5. Venezuela ($0.4B)
Foreign buyers often look to purchase a condo because of its convenience and ease of maintenance when traveling from outside the country.
By the Numbers
The report from Florida Realtors® on the state’s foreign buyer and seller transactions, the 2021 Profile of International Residential Real Estate Activity, shows that outside the South Florida market, Tampa Bay is just behind the great Orlando area for the top foreign buyer destination at 8%. Other highlights from the report include:
- $12.3B is the volume of Florida’s existing homes purchased by foreign buyers between August 2020–July 2021. This accounts for 5% of the dollar volume of Florida’s existing home sales, a 22% decrease from the previous 12 months of $15.6B
- 22,500 existing homes in Florida were purchased by foreign buyers, or 4% of existing-home sales (a 34% decrease from the previous 12 months of 33,900)
- 66% of foreign buyers paid all cash, compared to 39% of American buyers
- 72% of foreign buyers plan to use their properties for vacation, residential rentals, or both
- 52% of foreign buyers purchased single-family units
Tomlin St Cyr Real Estate Services ERA Powered is part of a global real estate network, which allows agents to market homes internationally and serve buyers who are relocating to Tampa Bay from around the world. Tomlin St Cyr is a full-service real estate brokerage. Contact us today to learn more about buying in Tampa Bay!