2018 Profile of International Residential Real Estate Activity in Florida
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2018 Profile of
International Residential
Real Estate Activity
in Florida
2018 Profile of International Residential Real Estate Activity in Florida
Prepared for Florida REALTORS® by the National Association of REALTORS®
October 2018
©2018 | Florida REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®
All Rights Reserved.
2
2018 Profile of International Residential Real Estate Activity in Florida
CONTENTS
1. Introduction……………………………………………………………………………. 4
2. Highlights………………………………………………………………………………… 6
3. Economic Environment…………………………………………………………… 9
4. Foreign Investment Market……………………………………………………..12
Market Size
Origin
Destination
Major Buyers of Top Destinations
Destination of Top Buyers
Prices and Financing
Intended Use of Property
Type of Property
Location Preference
5. Business Trends……………………………………………………………………….24
International Client Transactions
Reasons Client Did Not Purchase Property
Source of Referrals or Leads
Cultural and Language Issues
6. Appendix…………………………………………………………………………………28
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 3
2018 Profile of International Residential Real Estate Activity in Florida
1 INTRODUCTION
4
2018 Profile of International Residential Real Estate Activity Florida
INTRODUCTION
Since 2005, the National Association of REALTORS® National Association of REALTORS®
Research Group has conducted an annual survey for
Florida REALTORS® to assess international LAWRENCE YUN, PhD
investment trends in U.S. residential real estate, Chief Economist & Senior VP for Research
including sales volume, characteristics of foreign
buyers, as well as challenges and opportunities
GEORGE RATIU
inherent in cross-border transactions.
Director, Housing and Commercial Research
The 2018 Profile of International Residential Real GAY CORORATON
Estate Activity in Florida presents information from Research Economist
Florida REALTORS® members regarding residential
transactions with international clients closed during
the 12-month period of August 2017–July 2018. In Florida REALTORS®
this report, the year 2018 refers to the above 12-
month period, and the year 2017 refers to the BRAD O’CONNOR, PhD
period of August 2016–July 2017. Chief Economist
The term international or foreign client refers to two
types of clients: ERICA PLEMMONS
Research Analyst
- Non-resident foreigners (Type A): Non-U.S.
citizens with permanent residences outside the
United States. These clients typically purchase
property as an investment and/or for vacation, or
visits of less than six months to the United States.
- Resident foreigners (Type B): Non-U.S. citizens
who are recent immigrants (in the country less than
two years at the time of the transaction) or visa
holders residing for more than six months in the
United States for professional, educational, or other
reasons.
Florida REALTORS®, in coordination with the Miami
Association of REALTORS®, issued the survey
invitation to about 167,000 members. A total of
7,368 members responded to the survey over the
survey period of August 6 – September 3. Of the
respondents, 85 percent had at least one year of
REALTOR® membership.
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 5
2018 Profile of International Residential Real Estate Activity in Florida
2 HIGHLIGHTS
6
2018 Profile of International Residential Real Estate Activity in Florida
HIGHLIGHTS
The economic environment during the 12-month Characteristics of Foreign Buyers
period August 2017—July 2018 presented
opportunities and challenges for foreign buyers
▪ The bulk of foreign buyers—68 percent—
interested in purchasing U.S. residential property.
The main challenge that faced both domestic and primarily reside in another country (Type A). The
foreign buyers was the low supply of homes for sale share of foreign buyers in Florida outweighs the
compared to housing demand. In addition, solid 31 percent average from a national sample.
employment growth coupled with interest rates still ▪ Latin American and Caribbean buyers accounted
moving at historically low levels fueled strong price for the largest fraction of Florida foreign buyers
appreciation across Florida markets. A stronger at 36 percent. The other major buyers of real
dollar also made a home purchase more expensive estate properties were Canadians at 22 percent,
for foreign buyers from Venezuela and Brazil. Europeans at 19 percent, and Asians at 11
percent.
Size of Foreign Buyer Residential Purchases ▪ While foreign buyers purchased property across
▪ Foreign buyers purchased $22.9 billion of the state, most foreign buyers were concentrated
Florida’s existing detached single-family, in five metropolitan areas:
townhomes, and condominiums during the ‒ Miami-Fort Lauderdale-West Palm Beach
reference period of the 2018 survey, a five (54 percent)
percent decline from the level during the ‒ Orlando-Kissimmee-Sanford (nine percent)
previous 12-month period ($24.2 billion). ‒ Tampa-St. Petersburg-Clearwater (nine
▪ The dollar volume of foreign buyer purchases percent)
accounted for 19 percent of Florida’s volume of ‒ North Point-Sarasota-Bradenton (five
sales in 2018 (21 percent in 2017). Florida’s percent)
foreign buyers account for a larger fraction of the
dollar volume of existing home sales compared ‒ Cape Coral-Fort Myers (five percent)
to the national share of eight percent. ▪ Most foreign buyers—67 percent—made an all-
▪ Measured in number of homes, foreign buyers cash purchase (72 percent in 2017).
purchased 52,000 existing homes (detached ▪ Most foreign buyers—71 percent—purchased
single-family, townhomes, and condominiums), a residential property for vacation, residential
15 percent decrease from the level reported rental, or for both uses (68 percent in 2017).
during the previous 12-month period (61,300). Nationally, 37 percent of all foreign buyers
This represents 13 percent of Florida’s residential purchased for these purposes.
market (15 percent in 2017). Florida’s foreign ▪ Foreign buyers had a preference for townhouses
buyers account for a larger fraction of the
number of homes sold compared to the national or condominium—53 percent—while only 43
share of five percent. percent purchased a detached single-family
▪ The 2018 median purchase price among foreign home. Three percent purchased residential land
buyers increased to $286,500 ($259,400 in and another three percent purchased other types
2017), which is 20 percent more than the median of properties.
price of Florida’s existing home sales, at ▪ Nearly half of foreign buyers purchased in a
$236,500. suburban or small town/rural area.
▪ Most foreign buyers—93 percent—visited Florida
at least once before purchasing a property.
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 7
2018 Profile of International Residential Real Estate Activity in Florida
HIGHLIGHTS
Interactional Client Transactions
▪ A lower fraction of Florida REALTORS®’
respondents—41 percent—worked with an
international client in 2018 (44 percent in 2017).
Nationally, 23 percent of REALTORS® worked with
a foreign client.
▪ A lower fraction of respondents—23 percent—
reported an increase in their business that is
international in the past year (26 percent in
2017).
▪ A lower fraction of respondents—30 percent—
reported an increase in their business that is
international in the past five years (33 percent in
2017).
▪ A lower fraction of respondents—34 percent—
expect an increase in their international
transactions in the next 12 months (37 percent in
2017).
▪ The fraction of respondents who reported that
their client found Florida’s home prices to be less
expensive than the prices in their home country
decreased to 35 percent (41 percent in 2017).
▪ “Cost of property”, “could not find property”, and
“exchange rate” were the major reasons why
international clients decided not to purchase.
▪ Sixty-eight percent of foreign clients were
personal or business contacts or former clients.
▪ Most respondents—60 percent—reported no
significant issues when working with international
clients.
▪ Seventy-five percent of respondents were born in
the United States, and 34 percent were fluent in a
language other than English.
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 8
2018 Profile of International Residential Real Estate Activity in Florida
3
ECONOMIC ENVIRONMENT
9
2018 Profile of International Residential Real Estate Activity in Florida
ECONOMIC ENVIRONMENT
Macroeconomic and political conditions in the MEDIAN HOME PRICES AND
United States and abroad created both M O N T H S ’ S U P P LY O F E X I S T I N G
opportunities and challenges for foreign buyers. HOMES
These factors affected the desirability and $269,600
affordability of purchasing a property in the United $300,000 14.0
$250,000 12.0
States, specifically in Florida. Cultural affinity, social 10.0
$200,000
and family relations, and personal preferences were 8.0
$150,000 4.3
also major considerations when deciding to 6.0
$100,000
purchase property. 4.0
$50,000 2.0
$0 0.0
Jul/2007
Jul/2010
Jul/2013
Jul/2016
Apr/2008
Jan/2009
Apr/2011
Apr/2014
Apr/2017
Jan/2006
Jan/2012
Jan/2015
Jan/2018
Oct/2015
Oct/2006
Oct/2009
Oct/2012
U.S. Home Prices and Supply
Home prices in the United States and in Florida
Median Price, Existing Homes Sold in the U.S.
continued to be bolstered by housing demand that
outpaced the supply of homes for sale. The Months' Supply
inventory of existing homes for sale in the U.S. is Source: NAR
equivalent to about four months of the current
monthly sales’ pace, well below the normal level of
six months. Rising prices make a home purchase AVE RAG E YEA R - TO - YEA R CHA NG E
less affordable for domestic and foreign buyers O F T HE VA LUE O F T HE U. S.
alike. DO LLA R AG A I NST LO CA L
CURRE NCI ES DURI NG AUG UST
2 0 1 7– JULY 2 0 1 8
Exchange Rate
36%
During most of the period August 2017‒July 2018,
the dollar weakened against the Canadian dollar,
British pound, euro, Chinese yuan, and Mexican
peso. The dollar strengthened against the Brazilian
real and the Venezuelan bolivar which was devalued
5%
in July 2018 ( from 0.84 to 1.3 per USD) and then
again in August 2018 ( to 24.9 per USD). A weaker
-1%
-2%
-4%
dollar means that foreign buyers spend less of their
-5%
P O U N D / U S $ -6%
E U R O / U S $ -8%
local currency to purchase U.S. property.
NEW PESO/US$
RUPEE/US$
YUAN/US$
BRAZIL REAL/US$
BOLIVAR/US$
CANADIAN $/US$
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 102018 Profile of International Residential Real Estate Activity in Florida
ECONOMIC ENVIRONMENT
Oil Prices W E S T T E X A S I N T E R M E D I AT E
Oil prices have started climbing up following the SPOT PRICE IN U.S. DOLLARS
global cutback in oil production led by Saudi Arabia PER BARREL
in early 2017 to lift sagging oil prices. The spot price $160
for West Texas Intermediate has increased to nearly
$140
$70 per barrel in August 2018, from a low of
$30/barrel in February 2016. Rising oil prices $120
benefit oil exporters, including countries where U.S. $100
and Florida’s foreign buyers come from, such as $80 $68
Canada, Venezuela, Brazil, Mexico, Russia, and the $60
United Arab Emirates. $40
$20 $31
$0
Economic Growth
Dec/2005
Jun/2007
Jun/2010
Jun/2013
Jun/2016
Sep/2006
Mar/2008
Dec/2008
Sep/2009
Mar/2011
Dec/2011
Sep/2012
Mar/2014
Dec/2014
Sep/2015
Mar/2017
Dec/2017
Rising economic growth improves the spending
capability of foreign buyers to purchase a property.
Economic growth was sustained or accelerated in
countries where most U.S. foreign buyers come Economic growth picked up in the Euro area under
from. China and India were the fastest growing accommodative monetary policy. However, growth
economies in 2017, growing at six to seven percent. continued to taper in the United Kingdom in the
Canada’s economy rose three percent, while Latin wake of its decision to exit from the European
America and the Caribbean region climbed out of a Union by 2019. Global economic growth rose to 3.8
recession, as oil prices started climbing back after
OPEC countries agreed to cut back oil production in percent in 2017, and growth is expected to be
late 2016. sustained in 2018 and 2019 at an annual pace of 3.9
percent. The United States economy has been
expanding at a strong pace and creating about two
million jobs annually.
G DP G ROW T H RAT ES
7.8
9.0
8.0
6.4
7.0
6.0
3.9
5.0
3.0
2.8
4.0
2.2
2.0
2.0
1.5
3.0
2.0
1.0
0.0
-1.0
-2.0
2015 2016 2017 2018 Projection 2019 Projection
Source: IMF, April 2018 World Economic Outlook
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 112018 Profile of International Residential Real Estate Activity in Florida
4
FOREIGN INVESTMENT MARKET
122018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Size of Foreign Buyer Market DO LLA R VO LUME O F
I NT E RNAT I O NA L SA LES I N BI LLI O N
DO LLA RS
During August 2017‒July 2018, foreign buyers
purchased $22.9 billion of Florida’s existing homes,
a five percent decline from the previous 12-month $23.7 $24.2 $22.9
level ($24.2 billion). The dollar volume of foreign $19.4
$17.1 $17.3 $17.4
buyer purchases accounted for 19 percent of $14.5
$15.7
Florida’s existing home sales (21 percent in 2017).
Florida’s foreign buyer share to dollar volume of
homes sold is about twice the national foreign
buyer share of 10 percent.
2010 2011 2012 2013 2014 2015 2016 2017 2018
Foreign buyers purchased 52,000 existing homes, a
15 percent decrease from the previous 12-month
NUMBE R O F I NT E RNAT I O NA L
level (61,300). Foreign buyer purchases were 13
SA LES I N T HO USA ND UNI T S
percent of Florida’s existing home sales (15 percent
in 2017). Nationally, foreign home buyer home 66.1 65.3
61.3
comprised five percent of existing home sales.
53.6 52.3 52.0
44.3 47.0
44.0
Foreign buyers whose primary residence is in
another country (Type A) made up 68 percent of
Florida’s foreign buyers compared to 39 percent
nationally.
2010 2011 2012 2013 2014 2015 2016 2017 2018
T YPE O F FO RE I G N BUYE RS FO RE I G N BUYE R SHA RE TO
E XI ST I NG HO ME SA LES
70%
69%
68%
57%
51%
43%
32%
31%
30%
27% 28% 24%
23% 19% 21%
17% 19%
14% 15% 12% 12%
15% 19%
13%
2010 2011 2012 2013 2014 2015 2016 2017 2018
NON-RESIDENT (TYPE A) RESIDENT (TYPE B) As Percent of Florida's Home Sales
2016 2017 2018 As Percent of Dollar Volume
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 132018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Origin of Foreign Buyers The share of Latin American and Caribbean buyers
appears to have recovered somewhat, to 36
percent, mainly due to Brazilian buyers, which may
Latin American and Caribbean buyers accounted for be associated with the recovery of world oil prices.
the largest fraction of Florida’s foreign buyers at 36
percent, followed by Canadians at 22 percent,
Europeans at 19 percent, and Asians at 11 percent. The share of buyers from North America (Canada)
Respondents reported they did not know the was unchanged as the Canadian dollar strengthened
country of origin of 11 percent of their buyers. against the U.S. dollar and oil prices rebounded.
The share of European buyers to Florida’s foreign The share of Asian buyers has been on the uptrend,
buyers has been trending downwards since 2016, led by the rise in Chinese purchases. Most Chinese
and this may be associated with the uncertainty buyers reside in the U.S. under temporary visas or
about the trend of income and employment in are recent immigrants, and these buyers are less
Britain following its decision to leave the European likely to be impacted by the tightening of controls
Union by 2019. on dollar outflows from China Mainland.
O RI G I N O F FO RE I G N BUYE RS
60%
50%
40% 36%
30%
19% 22%
20%
11% 11%
10%
1%
0%
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 142018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Origin of Foreign Buyers shares. Foreign buyers from Mexico seemed to have
stepped back, accounting for less than one percent
The top buyers were Canada (22 percent), Brazil compared to past years’ share of two percent. The
(nine percent), the United Kingdom (five percent), share of Venezuelan buyers also decreased as
Venezuela (five percent), Colombia (five percent), Venezuela remains mired in a severe political and
and China (five percent). economic crisis. Argentina remained as a major
origin of foreign buyers, but its share in 2018 was
The share of Chinese buyers has increased since lower than the Chinese share.
2009 when they accounted for a mere one percent.
Chinese buyers now account for five percent of European buyers from the United Kingdom,
Florida’s buyers. Germany, and France each made up a smaller
fraction of all foreign buyers.
Among Latin American buyers, Brazilians made up a
higher fraction of Florida’s foreign buyers while
buyers from Venezuela and Mexico took up smaller
FLO RI DA 'S MA JO R FO RE I G N BUYE RS
45%
40%
35%
22%
30%
25%
20%
9%
15%
5%
5%
5%
5%
3%
10%
3%
5%
0%
United
Canada Brazil Venezuela Colombia China Germany Argentina
Kingdom
2009 26% 2% 5% 15% 2% 1% 7% 5%
2010 35% 3% 4% 15% 2% 2% 5% 2%
2011 39% 8% 7% 7% 3% 1% 5% 3%
2012 31% 9% 7% 5% 4% 2% 4% 5%
2013 30% 6% 8% 6% 3% 4% 5% 6%
2014 32% 6% 3% 7% 4% 6% 5% 3%
2015 11% 9% 18% 5% 7% 4% 2% 7%
2016 19% 9% 8% 6% 5% 3% 3% 6%
2017 22% 7% 6% 6% 5% 3% 4% 5%
2018 22% 9% 5% 5% 5% 5% 3% 3%
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 152018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Origin of Foreign Buyers
SHA RE O F NO N - RESI DE NT
Among the major foreign buyers, more than half of (T YPE A ) FO RE I G N BUYE RS
foreign buyers primarily resided abroad (Type A),
92%
except for Chinese buyers, where Type A buyers
83%
accounted for 39 percent.
62%
61%
59%
Destination of Foreign Buyers
39%
While foreign buyers purchased property across
the state, most foreign buyers were concentrated
in Miami-Fort Lauderdale-West Palm Beach (54
percent), Orlando-Kissimmee-Sanford (nine
percent), Tampa-St. Petersburg-Clearwater (nine
percent), North Point-Sarasota-Bradenton (five
percent), and Cape Coral-Fort Myers (five percent).
Miami-Fort Lauderdale-West Palm Beach had the
largest share of foreign buyers, more than twice its
market share of Florida’s closed sales during this
period (24 percent).
DEST I NAT I O N O F FLO RI DA 'S FO RE I G N BUYE RS
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Miami-Fort Lauderdale-W Palm Beach 52.6%
53.7%
Orlando-Kissimmee-Sanford 10.8%
9.4%
Tampa-St.Petersburg-Clearwater 8.5%
9.0%
North Port-Sarasota-Bradenton 4.7%
4.9%
Cape Coral-Fort Myers 5.7%
4.7%
Naples-Immokalee-Marco Island 2.5%
3.4%
Jacksonville 2.6%
2.5%
Port St. Lucie 1.8%
2.0%
Palm Bay-Melbourne-Titusville 1.5%
1.7%
Lakeland-Winter Haven 2.0%
1.6%
Deltona-Daytona Beach-Ormond Beach 1.3%
2017 2018
Other metro areas each account for one percent or less of the destination of foreign buyers.
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 162018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Destination of Foreign Buyers
Miami-Fort Lauderdale-West Palm Beach, Jacksonville foreign buyers were mainly
Orlando- Kissimmee-Sanford, and Palm Bay- from Asia and Latin American. Tampa-St.
Melbourne-Titusville foreign buyers were largely Petersburg-Clearwater had a mix of buyers.
from Latin American and the Caribbean.
North Point-Sarasota-Bradenton, Cape Coral-Fort
Myers, Naples-Immokalee-Marco Island,
Lakeland-Winter Haven, and Port St. Lucie foreign
buyers were mainly from Canada and Europe.
O RI G I N O F FO RE I G N BUYE RS I N FLO RI DA 'S ME T RO A REA S
MIAMI-FORT LAUDERDALE-W PALM BEACH 10% 16% 48% 20% 6%
ORLANDO-KISSIMMEE-SANFORD 15% 18% 47% 8% 10%
TAMPA-ST.PETERSBURG-CLEARWATER 14% 29% 16% 25% 15%
NORTH PORT-SARASOTA-BRADENTON 6% 32% 10% 41% 10%
CAPE CORAL-FORT MYERS 3% 29% 11% 50% 7%
NAPLES-IMMOKALEE-MARCO ISLAND 4% 31% 13% 44% 8%
JACKSONVILLE 39% 3% 24% 8% 21%
PALM BAY-MELBOURNE-TITUSVILLE 15% 26% 33% 11% 15%
PORT ST. LUCIE 15% 22% 7% 33% 22%
LAKELAND-WINTER HAVEN 8% 42% 21% 17% 13%
Asia/Oceania Europe Latin America and the Caribbean Africa North America Unknown
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 172018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Major Buyers of Top Florida Destinations
MAJOR FOREIGN BUYERS IN MIAMI-FORT MAJOR FOREIGN BUYERS IN ORLANDO-
LAUDERDALE-WEST PALM BEACH KISSIMMEE-SANFORD
Canada 20% Brazil 20%
Brazil 12%
Colombia 7% Canada 8%
Venezuela 7% Venezuela 8%
China 4%
Argentina 4% China 7%
United Kingdom 3% Colombia 7%
Chile 2%
Dominican Republic 2% United Kingdom 7%
Germany 2% Argentina 3%
Ecuador 2%
France 2% Dominican Republic 3%
Peru 2% Bolivia 2%
India 2%
Russian Federation 2% France 2%
Trinidad and Tobago 2% Russian Federation 2%
MAJOR FOREIGN BUYERS IN TAMPA- MAJOR FOREIGN BUYERS IN NORTH POINT -
ST. PETERSBURG-CLEARWATER SARASOTA-BRADENTON
Canada Canada 41%
25%
United Kingdom 12%
United Kingdom 13% China 4%
China 4% Brazil 3%
France 3%
Venezuela 4% Germany 3%
Germany 4% Hungary 2%
Ireland 2%
Iran 2% Romania 2%
Italy 2% Russian Federation 2%
Mexico 2% Switzerland 2%
MAJOR FOREIGN BUYERS IN NAPLES - MAJOR FOREIGN BUYERS IN JACKSONVILLE
IMMOKALEE-MARCO ISLAND
Canada 44% India 11%
Germany 17% Canada 8%
Argentina 4% China 8%
China 4%
Colombia 8%
Colombia 4%
Cuba 5%
Switzerland 4%
United Kingdom 4% Israel 5%
MAJOR FOREIGN BUYERS IN CAPE CORAL- MAJOR FOREIGN BUYERS IN PORT ST. LUCIE
FORT MYERS
Canada 50% Canada 33%
Austria 7%
Germany 14% China 7%
Brazil 6% Brazil 4%
Finland 4%
Switzerland 4% France 4%
China 3% Germany 4%
Malaysia 4%
Sweden 3% United Arab… 4%
United Kingdom United Kingdom 4%
3%
Venezuela 4%
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 182018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Destinations of Florida’s Top Foreign Buyers
DEST I N AT I O NS O F CA NA DI A N DEST I NAT I O NS O F BRA Z I LI A N
BUYE RS BUYE RS
Miami-Fort Lauderdale-W Palm Beach 48% Miami-Fort Lauderdale-W Palm Beach 65%
Cape Coral-Fort Myers 10% Orlando-Kissimmee-Sanford 20%
Tampa-St.Petersburg-Clearwater 10% Cape Coral-Fort Myers 3%
North Port-Sarasota-Bradenton 9% Palm Bay-Melbourne-Titusville 2%
Naples-Immokalee-Marco Island 7% North Port-Sarasota-Bradenton 2%
Orlando-Kissimmee-Sanford 4% Lakeland-Winter Haven 1%
Port St. Lucie 3% Tampa-St.Petersburg-Clearwater 1%
Deltona-Daytona Beach-Ormond Beach 2% Crestview-Fort Walton Beach-Destin 1%
Punta Gorda 1% Naples-Immokalee-Marco Island 1%
Sebastian-Vero Beach Jacksonville 1%
1%
Lakeland-Winter Haven Port St. Lucie 1%
1%
Deltona-Daytona Beach-Ormond Beach 1%
Jacksonville 1%
Sebastian-Vero Beach 1%
Palm Bay-Melbourne-Titusville 1% Other FL County 1%
Other FL County 1%
DEST I N AT I O NS O F UNI T E D DEST I NAT I O NS O F CO LO MBI A N
K I N G DO M BUYE RS BUYE RS
Miami-Fort Lauderdale-W Palm Beach 29% Miami-Fort Lauderdale-W Palm Beach 70%
Tampa-St.Petersburg-Clearwater 21% Orlando-Kissimmee-Sanford 13%
Orlando-Kissimmee-Sanford 12%
North Port-Sarasota-Bradenton 10% Naples-Immokalee-Marco Island 4%
Lakeland-Winter Haven 9%
Deltona-Daytona Beach-Ormond Beach Jacksonville 4%
5%
Naples-Immokalee-Marco Island 3% Tampa-St.Petersburg-Clearwater 1%
Cape Coral-Fort Myers 3%
Palm Bay-Melbourne-Titusville 2% Deltona-Daytona Beach-Ormond Beach 1%
Punta Gorda 2% Palm Bay-Melbourne-Titusville 1%
Port St. Lucie 1%
Ocala 1% Lakeland-Winter Haven 1%
Tallahassee 1% Ocala 1%
Homosassa Springs 1%
The Villages 1% Other FL County 4%
D EST I N AT I O N S O F C HI N ESE BUY E RS DEST I NAT I O NS O F VE NE Z UE LA N
BUYE RS
Miami-Fort Lauderdale-W Palm Beach 50% Miami-Fort Lauderdale-W Palm Beach 66%
Orlando-Kissimmee-Sanford 14%
Tampa-St.Petersburg-Clearwater 8% Orlando-Kissimmee-Sanford 15%
North Port-Sarasota-Bradenton 4% Tampa-St.Petersburg-Clearwater 7%
Jacksonville 4% North Port-Sarasota-Bradenton 2%
Gainesville 4%
Palm Bay-Melbourne-Titusville 2%
Naples-Immokalee-Marco Island 3%
Cape Coral-Fort Myers 3% Ocala 2%
Port St. Lucie 3% Cape Coral-Fort Myers 1%
Deltona-Daytona Beach-Ormond Beach 3% Port St. Lucie 1%
Palm Bay-Melbourne-Titusville 3%
Lakeland-Winter Haven 1%
Homosassa Springs 1%
Punta Gorda 1% Sebring 1%
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 192018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Prices and Financing
The median purchase price among foreign buyers With prices still rising, 71 percent of foreign buyers
increased to $286,500 ($259,400 in 2017). The purchased properties of $500,000 or less, slightly
foreign buyer median price was 20 percent higher lower than in 2017 (81 percent).
than the median price of Florida’s existing home Among the major buyers, buyers from Brazil and
sales, at $236,500. China typically purchased more expensive
Florida’s foreign buyers typically spent less for a properties, with the median purchase price at above
home purchase compared to all U.S. foreign buyers. $300,000. Canadian and Venezuelan buyers typically
purchased less expensive properties, with the
median purchase price at below $250,000.
ME DI A N PURCHA SE PRI CE ME DI A N PURCHA SE PRI CE A MO NG
FLO RI DA A ND U. S. FO RE I G N
$350.0 BUYE RS
$286.5
$300.0
$302.3
$250.0 $292.4
$286.5
$200.0 $277.4
$236.5
$150.0
$259.4
$100.0 $252.5
$50.0
$0.0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2016 2017 2018
FL Existing Home Sales Foreign Buyers U.S. Foreign Buyers Florida Foreign Buyers
AVE RAG E A ND ME DI A N PURCHA SE PRI CE A MO NG FLO RI DA 'S MA JO R
FO RE I G N BUYE RS
$614,355
$540,110
$403,865
$397,175
$375,000
$364,951
$325,000
$307,429
$275,000
$275,000
$225,000
$225,000
BRAZIL CANADA CHINA COLOMBIA UNITED VENEZUELA
KINGDOM
Mean Median
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 202018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Prices and Financing FINANCING
Sixty-seven percent of foreign buyers made an all-
72%
72%
cash purchase, a decline compared to the previous
67%
12-month share (72 percent).
The majority of Florida’s foreign buyers primarily
resided abroad (Type A). These buyers tend to make
an all-cash purchase because it is more convenient
27%
23%
21%
given the documentation required in obtaining a
U.S. mortgage.
2%
2%
2%
2%
2%
2%
2%
1%
1%
Among the major foreign buyers, Canadian and U.K.
buyers were the most likely to make an all-cash
purchase, with more than 80 percent of buyers
paying all-cash. Most Canadian and U.K. buyers
primarily resided abroad and purchased Florida
property for vacation use.
2016 2017 2018
Intended Use of Property
Most foreign buyers—71 percent—purchased FI NA NCI NG A MO NG FLO RI DA 'S
residential property for vacation, residential rental, MA JO R FO RE I G N BUYE RS
or for both uses (68 percent in 2017). Nationally, 37
percent of all foreign buyers purchased for these
purposes. 11% 19%
31%
33% 39% 36%
I NT ENDED USE O F RESI DE NT I A L
PRO PE RT Y
84% 81%
67%
35%
60% 57% 57%
30%
28%
27%
26%
23%
23%
22%
20%
15%
15%
13%
4%
3%
3%
3%
3%
2%
2%
1%
1%
VACATION BOTH STUDENT USE DON'T KNOW
HOME VACATION AND
RENTAL All Cash U.S. Mortgage
Home Country Mortgage Investors/Other
2016 2017 2018 Don't Know
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 212018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Intended Use of Property I NT E NDE D USE A MO NG FLO RI DA 'S
MA JO R FO RE I G N BUYE RS
Buyers from Canada and the United Kingdom were
more likely to purchase a vacation property. 4% 16%
15% 27%
26% 26% 16% 33%
10%
12%
11% 15%
Type of Property 13% 10%
Forty-three percent of foreign buyers bought a 19% 37%
65% 33%
townhouse or condominium, a slight decrease from 38% 51%
the share in 2017 (46 percent). Nationally, only 29 32%
22%
percent of foreign buyers purchased these types of 9% 13%
properties.
More than half of buyers from China and the United
Kingdom purchased detached singe-family homes. Vacation Home Residential Rental
Both Vacation and Rental Primary Residence
Student Use Other
Don’t Know
T YPE O F RESI DE NT I A L PRO PE RT Y RESI DE NT I A L PRO PE RT Y
PURCHA SES O F FLO RI DA 'S MA JO R
46%
FO RE I G N BUYE RS
44%
43%
41%
39%
38%
8%
19%
28%
42% 41%
49% 40%
21% 4%
13%
9%
11%
10%
6% 22%
21%
55% 62%
3%
3%
3%
2%
2%
46%
1%
41% 33% 27%
Other
Residential Land
Condominium or Cooperative
2016 2017 2018 Townhouse
Detached single-family
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 222018 Profile of International Residential Real Estate Activity in Florida
FOREIGN INVESTMENT MARKET
Location Preference LO CAT I O N PRE FE RE NCE
Seventy-four percent of foreign buyers purchased in
19% 14% 15% 15%
a central city/urban area or in a suburban area, with 31% 30% 32%
25% 27% 25%
the share split at 37 percent. Meanwhile, 15 percent 4% 10% 11% 10%
purchased in a resort area, a decline from the 33 6% 10%
7% 8%
8% 5%
percent share in 2008; this is consistent with the 30%
36% 37% 37%
declining share of Canadian and U.K. buyers, from 30%
27% 35% 39%
50 percent in 2008 to 27 percent currently. 32% 37%
Buyers from Venezuela and Colombia preferred a 47%
39% 40% 35% 37%
central city/urban area, mostly purchasing property 29% 26% 35% 30% 26%
in Miami Dade-Fort Lauderdale-West Palm Beach
and Orlando-Kissimmee-Sanford.
2016
2009
2010
2011
2012
2013
2014
2015
2017
2018
Ninety-three percent of foreign buyers had visited Central city/urban Suburban
Florida before purchasing a property, the same Small town/rural Resort
share in 2017.
NUMBER O F T I MES I NT E RNAT I O NAL LO CAT I O N PRE FE RE NCE A MO NG
C LI E N T VI SI T E D FLO RI DA BE FO RE MA JO R FO RE I G N BUYE RS
PURC HA SI NG A PRO PE RT Y
16% 8% 6%
4%
23% 23% 6% 19%
3%
14% 9% 20% 35%
39% 41%
29%
38% 49% 39%
26%
26%
56%
19%
45%
21%
21%
43%
20%
19%
26% 19% 22%
17%
12%
10%
10%
8%
8%
7%
7%
6%
7%
6%
5%
5%
4%
4%
3%
0 1 2 3 4 5 TO 8 TO MORE
7 10 THAN Central City/Urban Suburban
2016 2017 2018 10
Small Town/ Rural Resort
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 232018 Profile of International Residential Real Estate Activity in Florida
5 BUSINESS TRENDS
242018 Profile of International Residential Real Estate Activity in Florida
BUSINESS TRENDS RESPO NDE NT S W HO HA D A N
I NT E RNAT I O NA L CLI E NT I N T HE
International Client Transactions PA ST YEA R
77%
A lower fraction of Florida REALTORS®’ 69%
respondents—41 percent—worked with an 61% 61% 63%
53% 54% 52%
international client in 2017 (44 percent in 2017). 48% 44%
41%
Nationally, 23 percent of REALTORS® worked with a 35% 31%
26% 23% 28% 28% 27% 27% 28% 29%
foreign client. 23%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
A lower fraction of respondents—23 percent—
reported an increase in their business that is
U.S. Survey Florida Survey
international in the past year (26 percent in 2017).
CHA NG E I N T HE PE RCE NTAG E O F
A lower fraction of respondents—30 percent—
CLI E NT S W HO A RE
reported an increase in their business that is
international in the past five years (33 percent in I NT E RNAT I O NA L I N T HE PA ST YEA R
52%
51%
2017).
48%
26%
26%
26%
26%
23%
22%
A lower fraction of respondents—34 percent—
expect an increase in their international
transactions in the next 12 months (37 percent in
2017).
INCREASED STAYED ABOUT DECREASED
THE SAME
2016 2017 2018
O UT LO O K A BO UT I NT E RNAT I O NA L CHA NG E I N T HE PE RCE NTAG E O F
C LI E N T T RA N SAC T I O N S I N T HE CLI E NT S W HO A RE
N E XT 1 2 MO NT HS I NT E RNAT I O NA L I N T HE PA ST FI VE
YEA RS
49%
47%
45%
37%
42%
36%
36%
34%
33%
37%
33%
30%
21%
23%
22%
19%
21%
17%
16%
13%
11%
DECREASE REMAIN INCREASE DON'T INCREASED STAYED ABOUT DECREASED
THE SAME KNOW THE SAME
2016 2017 2018 2016 2017 2018
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 252018 Profile of International Residential Real Estate Activity in Florida
BUSINESS TRENDS
Reasons Client Did Not Purchase Property FLO RI DA REA L ESTAT E PRI CES
CO MPA RE D TO HO ME CO UNT RY
43%
41%
35%
The fraction of respondents who reported that their
29%
client found Florida’s home prices to be less
25%
23%
23%
22%
22%
expensive than the prices in their home country
14%
12%
11%
decreased to 35 percent (41 percent in 2017).
Given tight supply conditions and rising prices, “cost
of property”, “could not find property”, and
“exchange rate” were the major reasons why LESS ABOUT THE MORE DON’T
international clients decided not to purchase a EXPENSIVE SAME AS EXPENSIVE KNOW
property. THAN PRICES IN THAN
PRICES IN HOME PRICES IN
THE HOME COUNTRY THE HOME
COUNTRY COUNTRY
2016 2017 2018
REA SO NS CLI E NT DI D NOT PURCHA SE PRO PE RT Y
Cost of property 14%
15%
Could not find a property to purchase 14%
14%
Exchange rate 12%
11%
Condo/maintenance fees 10%
10%
Could not obtain financing 8%
7%
Immigration laws 7%
7%
Can not move money 7%
7%
Property taxes 5%
6%
Exposure to U.S. tax laws 5%
5%
Insurance costs 4%
3%
Loss of home country benefits 1%
1%
Don't know 5%
6%
Other 7%
9%
2017 2018
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 262018 Profile of International Residential Real Estate Activity in Florida
BUSINESS TRENDS
Source of Leads or Referrals Cultural and Language Issues
Most respondents—60 percent—reported no
Sixty-eight percent of foreign clients were personal significant issues when working with international
or business contacts or former clients. clients.
Seventy-five percent of respondents were born in
Among respondents who reported an online lead, the United States, and 34 percent were fluent in a
the respondents’ own website or social media language other than English.
platform and aggregators websites were the
primary sources of online leads. CULT URA L O R LA NG UAG E
BA RRI E RS
SO URC E O F RE F E RRA LS O R LEA D S
25% 29% 27% 29% 32% 35% 36%
O N F LO RI DA 'S FO RE I G N BUY E RS 35%
42% 43% 50%
Personal Contacts 28% 72% 66% 71% 67% 65% 61% 60%
59% 51% 52%
Referred by Previous Client 21% 42%
Was a Former Client 14%
Website/Internet Organic Search 10%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Walk-in/Open House/Phone Call 7%
Website/Internet (Paid Ad) 6%
U.S. Business Contact 3% Have Not Had Problems A Few Problems
Sings/Ads on Boards or Yard 2%
Significant Problems
Outside U.S. Business Contact 2%
Other 7%
PE RCE NT O F FLO RI DA REA LTO R®
RESPO NDE NT S W HO A RE FLUE NT
SO URC E O F O NLI NE LEA DS I N A LA NG UAG E OT HE R T HA N
E NG LI SH
41%
Aggregators 37%
39%
39%
37%
36%
34%
33%
33%
33%
Own 33%
30%
24%
Firm 13%
Other Brokers 5%
Local MLS 2%
Other Sources 2%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Don’t Know 7%
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 272018 Profile of International Residential Real Estate Activity in Florida
6 APPENDIX
282018 Profile of International Residential Real Estate Activity in Florida
APPENDIX
Appendix 1
Computation of Residential Purchases of Foreign Buyers in Florida for the 12-Month Period August 2017‒July 2018
Line Florida's Foreign Buyer Residential Purchases
1 Total U.S. Foreign Buyer Residential Purchases 266,800
2 Florida's Share to U.S. Foreign Buyer Residential Purchases (units) 19%
3 Number of Florida Foreign Buyer Residential Purchases 52,000
4 Average Price of Florida Foreign Buyer Residential Purchases $441,300
5 Dollar Volume of Foreign Buyer Residential Purchases in Florida $22,947,600,000
Florida's Residential Market for Existing Homes
6 Florida's Residential Dollar Volume (Single-Family, Condo/Townhomes) $123,781,992,466
7 Florida's Closed Sales (Single-Family, Condo/Townhomes) 398,169
8 Share of Dollar Volume of Foreign Buyer Purchases to Florida's Dollar Volume of Closed Sales 13%
9 Share of Foreign Buyer Purchases to Florida's Closed Sales 19%
Notes:
Line 1 Source: NAR's 2018 Profile of International Activity in U.S. Residential Real Estate
Line 2 Source: NAR's 2018 Profile of International Activity in U.S. Residential Real Estate
Line 3 Mutiply Lines 1 and 2
Line 4 2017 Profile of International Residential Activity in Florida
Line 5 Mutiply Lines 3 and 4 (Sales = # of units x mean price)
Line 6 Dollar volume of closed sales for single-family homes, condominiums, and townhomes. Source of data: Florida Realtors ®
Line 7 Closed sales for single-family homes, condominiums, and townhomes. Source of data: Florida Realtors®
Line 8 Divide Line 5 by Line 6.
Line 9 Divide Line 3 by Line 7.
Florida REALTORS® | the NATIONAL ASSOCIATION OF REALTORS® 292018 Profile of International Residential
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