Intl Buyers Facing More Competition, Fewer Sales
ORLANDO, Fla. — Florida Realtors® has released its latest report on the state's international buyer and seller transactions, the 2024 Profile of International Residential Real Estate Activity.
While we are well into the recovery phase of the pandemic, overall global activity still falls short of pre-pandemic levels. Geopolitical issues and central bank monetary policy have produced headwinds that drag on at the pace of recovery, resulting in muted GDP growth. Additionally, early recovery pandemic revenge travel trends appear to be leveling off, as international tourism remains below pre-pandemic levels. In terms of Florida’s tourism, 16% fewer Canadians came to Florida in 2024, with a more modest 10% increase in overseas visitors.
International purchases of Florida residential properties between August 2023 and July 2024 declined 44% compared to the prior 12-month period, in terms of sales counts. International buyers in Florida also face an unusually high level of competition from domestic out-of-state buyers in a high price, high-interest rate environment.
While sales prices are higher, the significant decline in transactions have pulled international buyer dollar volume to a multi-year low of $7.1 billion. Dollar volume in 2024 was 54% less than the recent high-water mark of $15.3 billion in 2022. Among those from the countries with the most dollar volume in 2024, Canadians purchased the most in dollar terms by a significant margin. In total, Canadian dollar volume in 2023 was $1.3 billion. Dollar volume decreased for British and Columbian buyers, while Argentine buyers bucked the trend, increasing spending to $608 million.
Higher prices and rising condo fees prohibited buyers of all kinds from closing deals over the past year. Roughly 67% of respondents reported at least one of their international clients ultimately chose not to buy a Florida property, up from 62% in 2022. Cost of property was the top reason cited (47%) that buyers did not close. Florida remains a bargain compared to many other options for international buyers looking to purchase in the United States, though competition for property remains strong offering little discount.
Florida has strong appeal and a positive reputation worldwide, yet most international buyers still want to visit before taking the plunge. In 2023, 93% of respondents visited Florida at least once before making a purchase. This compares to 92% in 2022 and 89% in 2021 when international buyers were hindered by travel bans in place during the pandemic.
2024 report highlights:
Residential purchases (non-commercial) between August 2023 and July 2024 declined 54% compared to the prior 12-month period. While sales prices are higher, the decline in transactions have pulled international buyer dollar volume to a multi-year low of $7.1 billion.
Number of existing homes purchased in Florida by international buyers, which is 3% of existing-home sales (44% lower from the prior 12-month period level of 23,700).
Share of international buyers whose primary residence is abroad (also known as Type A international buyers).
Florida’s top 5 buyer countries by sales:
- Canada (17% of international buyers)
- Argentina (10%)
- Colombia (7%)
- Brazil (6%)
- United Kingdom (5%)
Florida’s top 5 international buyers by dollar volume:
- Canada ($1.3 B)
- Brazil ($695 M)
- Argentina ($608 M)
- United Kingdom ($317 M)
- Colombia ($307 M)
Top international buyer destinations:
- Miami-Fort Lauderdale-West Palm Beach (49% of international buyers)
- Orlando-Kissimmee-Sanford (11%)
- Tampa-St. Petersburg-Clearwater (7%)
- Cape Coral-Fort Myers (6%)
- Naples-Immokalee-Marco Island (5%)
- North Port-Sarasota-Bradenton (4%)
Other details:
- International buyer median purchase price ($395,000 for all Florida existing homes sold): $469,000
- International buyers who paid all-cash (50% among all U.S. international buyers): 67%
- International buyers who intended to use the property for vacation, residential rental, or both uses: 74%
- International buyers who purchased single-family units: 54%
- Percent of international buyers who visited Florida at least once before making a purchase: 93%
- Percent of international buyers who were referrals of personal and business contacts and former clients, or who were former clients: 67%
- Respondents who reported clients (either non-U.S. citizen or U.S. citizen) seeking to purchase property abroad: 23%
- Percent of respondents who speak a language other than English: 41%
- Percent of respondents who “have not had problems” working with international buyers: 66%
Jennifer Warner is an economist and Director of Economic Development
© 2024 Florida Realtors®
Full Florida Realtor Article Here