Foreign Investment in Florida Real Estate: Residential Sales Bring in Billions of Dollars to Florida Economy in Past Year

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There's a lot of news coverage this week regarding foreign real estate investment in Florida: consider today's article in the Sun-Sentinel as an example:  "Foreign buyers boosting home sales."  

Why?  The new report by Florida Realtors has been released, its 2012 Profile of International Home Buyers in Florida, which provides good news for Florida's economy, such as: 

  • almost one-fifth of all Florida home sales in the past year (19%) have been to foreign buyers.
  • over ten billion dollars ($10.7 billion) came into the Florida economy from June 2011 to June 2012 from foreign buyers in Florida real estate property - most in deals where the foreign buyer put cash on the barrel head.
  • most of that cash influx from foreign sources entered Florida via the Miami-Dade real estate market.
  • Canadians spent the most here, making up around a third of the international investors.

However, another report out of Florida Realtors brings with it more good economic news, the August 27, 2012 John Tuccillo Market Report (Florida Realtors' chief economist), and doesn't seem to be getting as much of a media spotlight, even though it finds:

  • In July 2012, Florida's single-family inventory was at a 5.3-months supply and townhouse-condo inventory was 5.4-months.
  • Investors are buying real estate in Florida in a big way.
  • Low interest rates are bringing buyers to Florida residential real estate.
  • Distressed properties are being sold.
  • Builders are building new homes. 
  • In July 2012, closed sales rose for the 3rd month in a row, up 9.8% for single-family homes and 2.8% for townhouse-condos.
  • Single Family sales prices are going up: July 2011 - July 2012, the SFD median jumped from $137,300 to $148,000; townhouse-condo median, $92,000 to $102,000.

Two things to consider: foreign investment in Florida is big, and most welcome, but it's not the majority of investment here.  Another thing to consider:  what about commercial investment? These stats are all about residential real estate - and that's not the whole picture.

 

Published In: Finance & Banking Updates, International Trade Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Rosa Eckstein Schechter, Eckstein Schechter Law | Attorney Advertising

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Rosa Eckstein Schechter
Eckstein Schechter Law

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