International Real Estate Sales Declining in Florida and how Tampa compares to Miami

 

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Andrew Duncan, Tampa's #1 Realtor talks about foreign investment and the Real Estate market in Florida. Although Florida is a hot bed for international investment, sometimes the Tampa Bay folks are misled in terms of how much investment we get in Tampa. It is certainly a significant piece of the market but not quite as much as people think.

Last year, $23.7B spent in Florida by people outside of the country. This year, it was $19.4B which was a drop of 24%. Nationwide, foreign buyers only made up of 7% of existing home sales dollar volume. Foreign buyers purchased 47,000 residential properties in the 12 month period compared to 44,000 in 2015. There was an increase in the number of sales but it was the prices that dropped with international buyers. The dollar volume decreased from an average price of $539,000 last year to $412,000 this year. Median price decreased to $253,000 to $297,000. Strong US Dollar impact of sales this year, 58% said the effect was significant. 30% of foreign buyers said that Florida's real estate prices were more expensive than prices in their home area. 70% thought they were less. Latin America and Carribean buyers are counted for the biggest share of 39% of Florida home buyers. It was a noticeable year over year decline as it was 56% last year. Top 5 countries whose residents invest in Florida by dollare volume - Canada ($3B), Brazil ($2.8B), Venezuela ($1.5B), UK (1.4B), and Argentina (1.4B). Foreign buyers pruchase properties accross Florida but the primary destinations are Miami, West Palm Beach (52%); Orlando-Kissimmee (12%); and Tampa-St Petersburg (8%). 72% of foreign buyers were all cash. 72% bought the property for vacation or rentals. Just over half bought a townhome or a condo instead of a single family. 40% of foreign buyers chose a central city or urban location.  

It is still an important part of the real estate market but it is still a small segment compared to the hundred of billions of dollars that were sold in the Florida Market.


To get more Tampa Bay Real Estate news and advice from Tampa Bay's #1 Realtor, tune in to The Duncan Duo Real Estate Show on 970 WFLA - Tampa Bay every Sunday at 10 am.