The rise of the pound against the dollar since 2006 means that UK property buyers money goes a lot further than it did two or three years ago. There’s still a great deal of land to develop in Florida, so as well as re-sale property there’s an ample supply of brand-new and off-plan Florida property.
Between 2001 to 2007 the market was booming leading to the highest ever peak sales figures but due to over lending by banks and the financial economy the value of property plummeted and led to the down turn in the market. High interest rates and property repossessions then led to the number of distressed assets on the market which has attracted overseas investors with good return on their investments. Incredibly low purchase prices are thanks to the mass of foreclosures (repossessions) which has swept the USA after the 2007 down turn crash and the high number of USA citizens now turning to long-term renting.
Recent data from the National Association of Realtors (NAR) shows that the most aggressive buying activity is in Southern Florida and is mainly from foreign investors.
The international real estate market, defined as non-resident foreigners purchasing residential real estate in the USA, is important to Florida. NAR’s Profile of International Home Buying Activity, 2012 reported that four states Florida, California, Texas, and Arizona–accounted for 51 percent of total U.S. A. residential home sales to non-resident foreigners in the2011-2012 time frame.
Existing transactions have now been climbing year-on-year; Florida accounted for the largest share at 26 percent of total USA residential home sales to international clients, which NAR estimated at $82.5 Billion to resident and non-resident foreigners, with $41 Billion of sales to non-resident foreigners, a sign of strong investor demand.
Nationally, the level of international sales is relatively small in the neighbourhood of 4.8percent of all U.S.A home sales measured by transactions (2.4 percent of sales to non-resident foreigners, and 2.4 percent to resident foreigners). However, for Florida international sales are a major portion of the market. Total residential sales in Florida for the 12 months ended June 2012 were $58 Billion and sales to foreigners were estimated at $10.7 Billion. Approximately 19% of total Florida residential sales (subject to a 5 percent estimating range) are estimated to have been to non-resident foreigners in the 12 months ending June 2012.
- Approximately 19 percent of home sales measured in dollar volume in Florida were to non-resident foreigners.
- Nearly all sales were cash, comprising 82 percent of transactions
- Foreign purchasers were reported as viewing the U.S. residential housing market as providing good value, also helped by international dollar exchange rates.
State-wide closed sales of existing single-family homes totalled 20,403 in June, up 8.6 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes in the month of June 2013 rose 23.1 percent over the previous June. The state-wide median sales price for single-family existing homes last month was $175,000, up 15.1 percent from the previous year. For regular updates on the Florida property market.
According to the National Association of Realtors, the national median sales price for existing single-family homes in June 2013 was $214,700, up 13.2 percent from the previous year. In California, the state-wide median sales price for single-family existing homes in June was $428,510; in Massachusetts, it was $350,050; in Maryland, it was $284,841; and in New York, it was $242,475.
“The rest of the country is finally catching on to the fact that Florida’s real estate market is growing significantly,” said Florida Realtors Chief Economist Dr. John Tuccillo. “For the past two years, we’ve been up year-over-year in closed sales. The significant part of this month’s numbers is the growth in new listings, suggesting that the inventory crunch will ease in the second half of this year.”