International Home Sales Slow in Florida

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The number of homes sold to international buyers in Florida dropped in the last year, but the value of the transactions was up, according to new data from the National Association of Realtors.

A total of 22,572 existing homes were sold to non-resident foreigners in the 12 months ending July 2013, compared to 26,806 sales in the same period a year earlier. But the value of the foreign purchases rose to $6.43 billion from $6.20 billion, in part reflecting the rise in Florida's home prices.

The drop in transactions is partially attributed to economic slowdowns in Europe, Brazil and other countries that have been big suppliers of international buyers in Florida, according to Jed Smith, managing director of quantitative research for NAR. 

"International activity is down partially because there has been a worldwide recession," Mr. Smith told WPC News.

International buyers accounted for 9 percent of the $74 billion in existing home sales in Florida; a year earlier total sales in Florida were $58 billion.

Last year NAR and the Florida Realtors association announced that international buyers generated $10.7 billion in sales, accounting for about 19 percent of the state's $58 billion in sales. But the numbers were revised to match the current methodology, focusing on non-resident foreigners, Mr. Smith said.

Foreign buyers are still playing a key role in Miami and Miami Beach, which accounted for 21 percent of international sales in Florida, with the second largest group of buyers focusing on Orlando-Kissimmee, home to 14 percent of the international transactions. International buyers paid a median price of $216,477 for a home in Florida compared to the state's overall median price of $144,074 and the U.S. median price of $187,483, NAR reports.

Canadians represent the top number of buyers, accounting for 29.6 percent of international sales. The influence of Chinese buyers has grown from 0.8 percent of international deals in 2011 to 3.7 percent in 2013.

Florida attracts the largest share of international buyers in the country; 23 percent of national sales to foreign buyers closed in Florida.