As the world recovers from the pandemic, the property sales volume is beginning to increase. According to the International Residential Transactions in Florida Report by Florida Realtors®, the number of such transactions grew by 5% from August 2021 through July 2022 compared to the previous 12-month period. Due to price hikes, the sales volume in monetary terms also rose to $15.3 billion, which is 20% more than in 2021.
A total of 23,700 residential property transactions with foreign buyers were recorded in Florida in 2022 (compared to 22,500 deals in 2021).
However, the higher sales price, inflation, and shortage of supply in the market are still limiting the consumer capacity of all international customers. 49% of respondents called the cost and 38%, the availability the key reasons why they were not able to close the deal last year.
Florida still offers the best terms to foreign investors compared to other US states. International buyers are not intimidated even by high competition for scarce properties in the market. In 2022, 92% of such customers visited the state in person before closing the deal.
The majority of foreign buyers still come from South America (45%) and Canada (21%). The number of Canadians buying Florida homes has slightly declined, but the value of their purchases has increased to $1.7 billion, taking them to No. 1 by the sales volume in 2022. Brazilians who purchased $486 million worth of real estate are in the second place.
The Miami – Fort Lauderdale – West Palm Beach metropolitan area remains the most popular in Florida among foreigners.
International buyers, however, feel the growth of house prices in this state particularly acutely: in 2022, the median sales price for them was $462,000 ($114,700 more than a year ago). This is 22% higher than the median price of all residential properties sold in Florida from August 2021 through July 2022.
The most expensive homes are usually purchased by Brazilians, for whom the median selling price is $472,140. Such customers prefer standalone single-family houses in more prestigious metropolitan areas. Argentinians mostly select housing in South Florida too, but for them, the median selling price is $334,444.
Foreign buyers most frequently (in 69% of cases) pay in cash for obvious reasons. This method is particularly popular among nationals of Canada, Peru, and Argentina. The percentage of those taking mortgage loans in the USA is somewhat higher among Brazilians and Columbians.