The international market is alive and well in Florida. It really is a small world after all. Changes globally impact us here at home in Florida both positively and negatively. Why does the international market matter so much? Florida receives 22% of all international buyers. In fact, we are the number one state that international buyers purchase in. Many guess that California or New York are the most popular however they trail Florida with !5% for California and 4% for New York. This shift has occurred since because of the perceived value for Florida properties.
One of the benefits of the international buyer is that their average sales price is higher. The average sales price for Florida buyers was $258,200 compared to Florida International buyers at $538,600.
Why do international buyers purchase a home in Florida?
41% selected Florida because it is a desirable location. That is an easy guess. Who wouldn't love warm weather, great beaches and a lot of entertainment.
30% selected Florida because it was a secure investment.
21% selected Florida because it was a profitable investment.
The value of the US dollar versus their prospective country's currency impacted their ability or comfort to make a purchase. The Canadian, Brazil and Britain have seen the impact and therefore their buying decisions.
Why do international buyers decide not to purchase? The number one reason is the cost of the property. This is up 7% in a year. The other reason is that they could not find the right property. Many times, this could be avoided by finding the right agent that understands their needs, takes a consultative approach, has an understanding of the market and a proven track record.
The International Market is always changing and it is important to look for the opportunities that are current and also upcoming. I would say all countries are important however some impact our real estate market more than others. Changes in economic and political situations in other countries as well as the United States can impact buying and selling decisions for South Florida.
Why is the International Market important? They make up many of our real estate transactions and also tend to buy more expensive properties. What do the international buyers spend by country?
United Kingdom $289,600
Western Europe $844,500
Most of the international buyers are purchasing with cash which also helps with our real estate market stability. Only about 20% of the buyers obtained a mortgage.
Why are they buying? We are seeing a variety of reasons. Buyers from the UK were the most likely to purchase for vacation or rental. Buyers from China like to buy properties for their primary residence or for their college students to occupy. This is one of the reasons that the Chinese tend to spend more.
Why should Palm Beach County be considered by international buyers? Palm Beach County offers stability and opportunity. There are amazing communities that have a variety of lifestyles including golf, great beaches and unlimited entertainment. There is something for everyone.