Longboat Key, Florida | November 28th, 2017 – A new report of the National Association of Realtors (NAR) has just confirmed our experience at the Judy Kepecz-Hays team—that we are engaging more buyers from abroad compared with other realtors in the overall U.S. market.
This new study released this November showed that Florida remains as the leading choice of foreign buyers of U.S. residential properties. According to this NAR research, the Sunshine State took 22 percent of all the foreign purchases in the country from August 2016 to July 2017.
During this 12-month period, 44 percent of Florida realtors reported having worked with foreign clients. This compares nationally with only 29 percent of overall U.S. realtors who engaged an international buyer.
Resort Communities Preferred
Quite favorable for prospective sellers in Longboat Key, the NAR report also indicated that foreign buyers now appear favoring purchases in a resort communities, with those buying in these neighborhoods rising to 15 percent from 14 percent of the prior 12-month period. As encouraging for sellers, the great majority of foreigners who bought Florida residences paid in cash. These all-cash transactions was estimated at 72 percent of the total international sales in the state during the year ended July 2017.
Another bright note which we have gleaned from the recent NAR report is that our North Port–Sarasota–Bradenton area is among the five Florida metro areas where most foreign buyers were concentrated. The NAR research noted that buyers from Europe, Canada, and Asia and Oceania were the top buyers, respectively accounting for 37 percent, 36 percent and 10 percent of total sales in our region.
More Canadians Buying
The good news here is that Canadian buyers of real estate in Florida continue to gain in numbers, while other international purchases were either on a decline or just steady. The share of Florida’s foreign buyers from Canada rose to 22 percent in 2017 from 19 percent in the prior 2016 12-month period.
NAR analysts attributed this gain to the stronger growth of the Canadian economy and its currency’s stability vis-a-vis the U.S. dollar. Also helping, they added, was the modest rise in U.S. residential real estate prices compared with the brisk price appreciation of residences in Canada.
Foreigners Pay More
Driven mainly by the increase in buyers from Canada, the total international sales of residential properties in Florida rose to $24.2 billion in the 12-month period ended July 2017 from the $19.4 billion registered the previous year. The median buying price of international buyers during this comparative period rose to $259,400 from $252,500. Significantly, this median price that foreign buyers paid is 18 percent higher than the $220,000 median price of residences in the overall Florida market.
Clearly, selling to an international buyers has certain advantages, such as the possibility of a higher selling price and an all-cash purchase. Check with us at the Judy Kepecz-Hays team if you plan to sell your residence. We have a strong network in the market which covers both international and domestic prospects which could give you the best offer for your property.