.png)
Florida Realtors® has recently unveiled its comprehensive analysis, the 2023 Profile of International Residential Real Estate Activity, shedding light on the origin and purchasing patterns of international clients in the Sunshine State. During the period from August 2022 to July 2023, the report indicates an 18% decrease in international buyer transactions for residential properties compared to the previous 12-month period. Global economic challenges persist, hindering a return to pre-pandemic sales levels. Adding to the complexity, international buyers in Florida are grappling with heightened competition from domestic out-of-state buyers within a landscape characterized by elevated prices and interest rates.
Despite the decline in transactions, the average sales prices have increased, contributing to a total international buyer dollar volume of $12.6 billion, aligning with 2021 levels. This figure represents an 18% reduction from the $15.3 billion recorded in the preceding year. Notably, Canadians led in dollar volume, with a total of $2.1 billion in purchases, while dollar volume decreased for buyers from Colombia, Peru, and Mexico.
The surge in property prices and interest rates has affected buyers across the board, resulting in 68% of respondents reporting instances where their international clients opted not to proceed with a Florida property purchase, a notable increase from 62% in 2022. The predominant reason cited for these decisions was the cost of the property (47%), emphasizing the ongoing competitiveness of Florida's real estate market.
Despite the global allure and positive reputation of Florida, the majority of international buyers prefer to visit the state before committing to a purchase. In 2023, 93% of respondents visited Florida at least once before making a property acquisition, reflecting a slight increase from 92% in the previous year and 89% in 2021, when pandemic-related travel restrictions were in effect.
Key Insights from the 2023 Report:
- Residential purchases between August 2022 and July 2023 totaled $12.6 billion, reflecting an 18% decline from the previous 12-month period.
- The number of existing homes purchased by international buyers was 19,500, constituting 5% of existing-home sales, a 18% decrease from the prior period's 23,700.
- Canada led as the top buyer country, representing 18% of international buyers, followed by Colombia (10%), Brazil (7%), Argentina (7%), and the United Kingdom (4%).
- The top five international buyers by dollar volume were Canada ($2.1 billion), Brazil ($1.5 billion), Colombia ($982 million), Peru ($539 million), and Mexico ($524 million).
- Key international buyer destinations include Miami-Ft. Lauderdale-West Palm Beach (47%), Orlando-Kissimmee-Sanford (14%), Tampa-St. Petersburg-Clearwater (8%), Cape Coral-Ft. Myers (6%), and North Port-Sarasota-Bradenton (4%).
- The median purchase price for international buyers was $416,000, compared to $383,000 for all existing homes sold in Florida.
- Sixty-two percent of international buyers paid in full in cash, a figure higher than the 44% observed among all U.S. international buyers.
- Sixty-four percent of international buyers intended to use the property for vacation, residential rental, or both.
- Fifty-three percent of international buyers purchased single-family units.
- Ninety-three percent of international buyers visited Florida at least once before making a purchase.
- Sixty-seven percent of international buyers were referrals from personal and business contacts, former clients, or were former clients themselves.
- Twenty-four percent of respondents reported clients (either non-U.S. citizens or U.S. citizens) seeking to purchase property abroad.
- Forty-five percent of respondents spoke a language other than English, while 70% reported having no issues working with international buyers.
You can download the full report here below!