International Clients Invest in Florida Real Estate More than Any Other State
As the housing market continues to improve, there were indications that more local residents are staying in Florida, but in the past year, the state continued to remain the top destination for international real estate buyers. This information comes according to a report from the National Association of Realtors and would appear to be a boon to the continually improving Florida real estate market.
International Buyer Profiles
The National Association of Realtors’ report from June 2015 looked at purchases from buyers in China, Canada, India, Mexico and the United Kingdom. The results showed that over 20 percent of international real estate buyers chose Florida as the destination state for their purchase. Florida far outstrips every other state in the U.S. for international client purchases, with Miami, Miami Beach and Fort Lauderdale ranking among the top 20 cities searched on the realtor.com website.
Statistics and Numbers
In the report, Miami ranked as the second most popular city for real estate searches. Miami Beach was fifth on the list, and Naples ranked 13th. The major destinations looked at by international clients saw Florida as no. 1 since 2010, with the percentage ratings as follows:
• 2010: 22% of clients’ destination search
• 2011: 31% of clients’ destination search
• 2012: 26% of clients’ destination search
• 2013: 23% of clients’ destination search
• 2014: 23% of clients’ destination search
• 2015 (So far): 21% of clients’ destination search
These numbers are in comparison to 12 to 16 percent in California (the second most popular state) and Hawaii, the 10th most popular destination, at 2 percent consistently since 2010. Between Florida, California, Texas and Arizona, these states accounted for roughly half of all international sales in the real estate market.
Top Cities
As mentioned earlier, the top 20 cities searched contain three Florida locations in Miami, Miami Beach and Naples. Other Florida cities that made the top 35 search rankings included Fort Lauderdale, Cape Coral, Jupiter and Tampa. With a full seven cities in the top rankings, Florida looks to remain a strong contender for international real estate buyers in the foreseeable future.
Factors Involved
Factors involved in Florida’s popularity seem to include nearness to the buyer’s home country, nearness to family, friends and colleagues, job opportunities, education, climate and environment. Europeans and Canadians in particular seem to be attracted to Florida, as are buyers from Latin America. For many, these purchases are for the purpose of a second home or vacation property
In addition, pricing is a prime attractor of these international buyers. The cost of owning properties appears much lower in the United States than in other nations, with housing prices fluctuating which makes them appear a good financial investment in addition to an affordable second residence. This is true even when one accounts for the additional costs of property taxes, condo fees, real estate regulations and insurance costs.
When it comes time to purchase a property in Florida, international real estate buyers will want to be sure they have the right title insurance. We are glad to provide an overview of insurance services, and encourage all buyers to contact us at [email protected] or by phone at (305) 901-5628 for more information today.
