Professional Documents
Culture Documents
December 2016
The team acknowledges Jessica Lautz, Managing Director, Survey Research and Communications; Lisa
Herceg, Director, Marketing Research; Meredith Dunn, Communications Manager; and Amanda Riggs, Survey
Analyst, for their valuable comments in improving the survey questionnaire and editing the report.
1
Table of Contents
ABOUT THE SURVEY ....................................................................................................................... 1
SUMMARY ....................................................................................................................................... 3
I.
II.
SUMMARY
Florida remained the top destination of foreign buyers purchasing U.S. residential
properties in 2016, accounting for 22 percent of all foreign buyers who purchased
residential property in the United States.2 However, slower economic growth in many
countries, the appreciation of the dollar against a number of currencies, and strong price
growth in multiple areas due to limited housing inventory combined to make conditions
more difficult for foreign buyers purchasing in the United States and in Florida.
Residential Properties Purchased by Foreign Buyers
National Association of REALTORS, 2016 Profile of International Activity in U.S. Residential Real Estate.
The estimate is based on foreign purchases from April 2015March 2016.
2
Just over half (52 percent) of foreign buyers bought a townhouse or condominium.
Nationally, only 29 percent of foreign buyers purchased these types of properties.
Floridas foreign buyers are increasingly located in a central city/urban area. Forty
percent of foreign buyers chose a central city or urban location, up from 25 percent
eight years ago. Meanwhile, 14 percent purchased in a resort area, down from 33
percent in 2008.
Forty-two percent expected a decrease in foreign clients in the next 12 months.
Among respondents, 14 percent reported that they had a client seeking to purchase
property abroad.
Countries in Latin America and the Caribbean generated the most inquiries. Spain, Italy,
Canada, the United Kingdom, France, and Germanycountries that are also origins of
foreign buyerswere also of interest.
Most clients, 79 percent, were interested in residential property.
Most clients, 84 percent, intended to use the property for vacation, residential rental, or
both uses.
I.
In the 12-month period ending in July 2016, foreign buyers purchased $19.4 billion
of Florida residential real estate, an 18 percent decrease from the $23.7 billion in purchases
during the 12-month period ending in June 2015.3 The dollar volume of foreign buyer
purchases accounted for 19 percent of Floridas existing home sales, a decrease from the 24
percent share in 2015. Nationally, the dollar volume of such sales accounted for seven
percent of the U.S. dollar volume of existing home sales.
Dollar Volume of International Sales in Billion Dollars
$23.7
$25
$20
$15
$15.2
$14.5
$19.4
$15.7
$10.3 $11.2
$10
$5
$2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The 2016 Florida REALTORS survey covered the period August 2015July 2016. In past Florida
REALTORS surveys, the 12-month period generally covered July of the previous year to June of the current
year. No survey was held in 2006. The 2005, 2007, and 2008 surveys covered only non-resident foreign
buyers (Type A). Starting in 2010, the estimates were benchmarked to the national survey. Starting in 2015,
the purchase price was top-coded at $5 million from $1.3 million in previous surveys. From 20052015,
estimates included some purchases for commercial properties. In 2016, NAR estimated the value of these
commercial purchases at $2 billion. See Appendix 1 for the calculations and Appendix 2 for notes on the
survey and estimation methods.
4 Source: NARs 2016 Profile of International Activity in the U.S. Residential Real Estate. The reference period
in estimating the national level of foreign buyer purchases of residential property is April 2015March 2016.
3
70.0
65.3
60.0
53.6
46.0
50.0
39.8
40.0
52.3
44.3
47.0
44.0
30.6
24.5
30.0
20.0
10.0
0.0
2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
60%
50%
43%
28%
27%
19%
19%
20%
27%
10%
0%
51%
38%
40%
30%
57%
12%
14%
19%
21%
23%
17%
14%
15%
24%
12%
19%
12%
2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
As Percent of Unit Sales
$539
$500
$400
$300
$412
$297
$253
$200
$100
$0
Median Price
2015
Average Price
2016
The share of foreign buyers who purchased homes priced above $250,000
decreased to 50 percent from 59 percent in 2015. The declining share of buyers from Latin
America who tend to purchase at the higher price range, and the appreciation of the dollar
which creates more incentive for buyers to seek less expensive properties, may account for
the decline in average and median foreign buyer purchase prices.
Florida Foreign Buyers Purchase Price Distribution
14%
12%
10%
8%
6%
4%
2%
0%
2015
2016
7.3
6.9
6.56.2
2.5
1.9
1.21.5
Canada
2014
1.61.51.6
0.9
China
2015
Euro Area
2016 Projection
1.3
1.1
-0.1 -0.5
Latin America
and the
Caribbean
2017 Projection
India
Respondents reported that the major reasons why a potential foreign buyer decided
not to purchase a property were related to exchange rates, costs, and an inability to find a
property.
5International
17%
15%
14%
10%
10%
9%
6%
5%
5%
5%
3%
1%
A higher share of respondents, 58 percent, reported that the exchange rate had a
significant impact on their transactions (52 percent in 2015). A larger fraction of
respondents, 30 percent, also reported that Floridas real estate prices were more
expensive than prices in their home country (22 percent in 2015).
Impact of Value of U.S. Dollar on Foreign Clients
100%
80%
41%
36%
34%
56%
52%
58%
38%
33%
60%
40%
20%
0%
47%
49%
51%
37%
7%
12%
15%
15%
10%
9%
2011
2012
2013
2014
2015
2016
Not Much
Moderate
Significant
5%
11%
6%
13%
6%
14%
7%
13%
9%
15%
22%
30%
15%
16%
60%
40%
84%
81%
80%
80%
76%
63%
55%
2015
2016
20%
0%
2010
2011
2012
Less Expensive
2013
2014
More Expensive
Both the increase in U.S. home prices and the stronger dollar raised the price of U.S.
properties valued in foreign currencies, as shown in the graph below. For example, a
Venezuelan buyer who purchased an existing single-family home in Miami-Fort
Lauderdale-West Palm Beach MSA faced a 73 percent price increase in July 2016 compared
to the price in July 2015, when the dollar values of the properties during these months
were converted to Venezuelan bolivars at the exchange rate prevailing during these
periods.6
Percent Change in the Median Price of Miami-Fort
Lauderdale-West Palm Beach Existing 1-Family Homes
Measured in Foreign Currencies from July 2015July 2016
80%
70%
60%
50%
40%
30%
20%
10%
0%
73%
29%
22%
15%
12%
10%
10%
8%
5%
5%
1%
The estimate is based on NARs quarterly median price for single-family homes. The median prices in the
third quarter of 2015 and 2016 were used as proxies for the median prices in July 2015 and July 2016.
6
10
II.
27%
26%
17%
25%
50%
3%
3%
2008
42%
5%
3%
2009
35%
31%
30%
32%
36%
32%
23%
28%
28%
24%
4%
2%
2011
6%
3%
2012
38%
17%
37%
6%
4%
2010
27%
5%
11%
8%
19%
56%
39%
29%
19%
8%
4%
11%
5%
2013
2014
8%
2%
2015
Africa
Europe
North America
Unknown
23%
10%
1%
2016
11
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
United
Argentina Colombia
Kingdom
Canada
Brazil
Venezuela
China
Germany
Italy
France
Peru
Mexico
2008
26.6%
2.4%
4.7%
21.2%
1.7%
1.7%
0.5%
6.7%
2.4%
4.2%
0.5%
2.4%
2009
25.9%
1.9%
5.4%
15.1%
4.6%
1.6%
0.5%
6.8%
2.7%
4.6%
0.3%
2.4%
2010
35.1%
3.0%
4.1%
15.1%
1.5%
1.7%
1.9%
5.0%
1.1%
2.8%
0.2%
1.1%
2011
39.1%
7.8%
6.8%
7.0%
3.3%
2.6%
0.8%
4.6%
1.3%
4.1%
0.3%
1.7%
2012
30.7%
9.3%
7.5%
4.6%
5.2%
3.9%
2.2%
3.7%
2.5%
4.5%
2.1%
1.3%
2013
29.6%
6.5%
7.6%
5.8%
5.5%
3.2%
3.9%
5.3%
1.4%
3.2%
2.1%
0.5%
2014
31.6%
5.7%
3.4%
7.0%
2.9%
3.5%
5.7%
5.4%
1.0%
3.2%
1.3%
2.0%
2015
11.1%
9.4%
18.4%
5.1%
6.7%
7.0%
3.8%
2.3%
1.4%
2.6%
1.5%
2.3%
2016
18.9%
8.7%
7.8%
6.2%
6.0%
5.2%
3.5%
3.3%
2.9%
2.3%
2.0%
2.0%
Floridas foreign buyers were from many countries, but the bulk of buyers came
from Canada, Brazil, Venezuela, the United Kingdom, and Argentina, which altogether
comprised 48 percent of Floridas foreign buyers. The fraction of buyers from Venezuela
declined significantly (18 percent in 2015, eight percent in 2016), while the share of buyers
from Canada increased (11 percent in 2015, 19 percent in 2016).
Historically, Venezuelan buyers have bought more expensive properties than
Canadian buyers, and this change in the mix of buyers may partly account for the decrease
in the average purchase price of Floridas foreign buyers in 2016.
The top five foreign buyers purchased $10.1 billion worth of residential property, 52
percent of total dollar volume from international sales.
Canada, $3.04
United
Kingdom, $1.43
Venezuela,
$1.49
13
The Tampa-St. Petersburg-Clearwater MSA accounted for eight percent (six percent
in 2015). Its share of foreign buyers is less than its 13 percent share of Floridas existing
home sales.
Cape Coral-Fort Myers MSA, North Point-Sarasota-Bradenton MSA, NaplesImmokalee-Marco Island MSA, and Port St. Lucie MSA were also popular destinations, and
each accounted for three percent of Floridas foreign buyers.
Non-MSA, which includes counties that are not delineated within a metropolitan
statistical area, accounted for seven percent of foreign buyer purchases in 2016 .8 This is
higher than its two percent market share of Floridas existing-home sales.
Metropolitan statistical areas (MSAs) marked with asterisks were not listed separately in the 2015 survey or
because of a change in MSA delineation (specifically, Flagler County was delineated as part of DeltonaDaytona Beach-Ormond MSA in 2013 per OMB Bulletin 13-01 dated February 28, 2013 which Florida
REALTORS used starting in 2015. The sales for these areas that are not listed separately may be reported in
"Other area" or Non-MSA. See Appendix 2 for list of areas in the 2015 and 2016 surveys.
8
14
Miami-Fort Lauderdale-West Palm Beach MSA (Broward, Miami-Dade, and Palm Beach counties)
Jacksonville MSA (Baker, Clay, Duval, Nassau, and St. Johns counties)
Deltona-Daytona Beach-Ormond Beach MSA (Flagler and Volusia counties)*
Palm Bay-Melbourne-Titusville MSA (Brevard County)*
11.5%
8.0%
7.7%
5.9%
3.5%
3.0%
3.2%
7.0%
3.0%
2.3%
2.5%
0.6%
2.5%
2.2%
1.4%
0.1%
1.2%
0.8%
0.4%
0.6%
0.6%
0.5%
1.6%
0.5%
0.4%
0.4%
0.4%
1.3%
0.3%
0.3%
0.2%
0.2%
0.1%
0.1%
Non-MSA
Other area
2016
6.6%
13.4%
2015
15
10.0%
0.5%
2.9%
1.4%
2.7%
0.4%
0.7%
0.2%
0.5%
2.5%
Jacksonville MSA (Baker, Clay, Duval, Nassau, and St. Johns counties)
40.0%
50.0%
60.0%
6.2%
0.6%
1.6%
31.4%
52.1%
3.0%
5.4%
3.2%
6.4%
30.0%
3.5%
5.2%
20.0%
0.5%
0.9%
11.5%
9.5%
16
10.0%
60.0%
2.5%
2.5%
0.8%
1.0%
0.1%
0.2%
0.4%
0.9%
Non-MSA
50.0%
0.3%
1.6%
40.0%
0.3%
1.0%
0.6%
1.2%
30.0%
1.2%
2.6%
20.0%
7.7%
13.3%
0.1%
0.3%
1.9%
6.6%
17
6%
8%
41%
26%
8%
Europe
39%
18%
13%
54%
41%
6%
23%
18%
8%
25%
25%
40%
47%
34%
19%
41%
8%
24%
15%
15%
13% 6%
15%
42%
6%
3%
8% 7%
8%
26%
34%
20%
North America
13%
31%
10%
Unknown
The next set of charts show the foreign buyers from single countries that accounted
for more than three percent of foreign buyer purchases in each metropolitan statistical
area (MSA). Note that Canada was the top country of origin in all MSAs except OrlandoKissimmee-Sanford.
All Other Areas represents Floridas other metropolitan statistical areas (MSAs) and areas outside MSAs
which are not separately shown in the chart because of the small size of foreign buyers in each of these areas.
9
18
39%
Germany
20%
United Kingdom
7%
Norway
4%
Switzerland
4%
Other
20%
Unknown
6%
13%
China
8%
Costa Rica
8%
Germany
8%
Israel
8%
Other
41%
Unknown
15%
13%
12%
12%
9%
8%
3%
3%
3%
3%
28%
6%
19
41%
United Kingdom
18%
Germany
10%
Bolivia
5%
Italy
5%
Other
21%
40%
United Kingdom
15%
France
10%
Germany
4%
Mexico
4%
Other
Unknown
24%
3%
19%
15%
8%
7%
4%
4%
4%
3%
29%
7%
20
8%
France
6%
6%
Brazil
5%
Venezuela
5%
Other
44%
Unknown
26%
34%
9%
China
Venezuela
Israel
Nigeria
5%
4%
4%
3%
3%
3%
3%
21%
Unknown
13%
The next set of charts shows the destinations of the top five foreign buyers. Buyers
from Argentina, Brazil, and Venezuela generally purchased property along the eastern
coast of Florida, while buyers from Canada and the United Kingdom purchased property
towards the central and west gulf coast.
21
79%
6%
Tampa-St.Petersburg-Clearwater MSA
2%
Jacksonville MSA
2%
1%
1%
1%
1%
Other
6%
69%
Orlando-Kissimmee-Sanford MSA
24%
2%
Tallahassee MSA
1%
1%
Jacksonville MSA
1%
Tampa-St.Petersburg-Clearwater MSA
1%
1%
Other
2%
3%
2%
2%
2%
1%
1%
1%
1%
1%
7%
7%
6%
5%
14%
36%
11%
22
29%
15%
12%
9%
8%
5%
2%
1%
1%
1%
1%
1%
1%
1%
13%
80%
Orlando-Kissimmee-Sanford MSA
Tampa-St.Petersburg-Clearwater MSA
11%
4%
2%
1%
1%
Ocala MSA
1%
1%
Other
1%
NAR computed the median price of Floridas closed sales as the weighted average of the median price of
residential closed sales in Floridas metro areas, using as weight for each metro area its share to total closed
sales. Florida REALTORS provided the data on closed sales and median prices.
10
23
Thousands
$299
$337
$297
$285
$229 $227
$182
$200
$253
$248
$217 $210
$181 $175 $194
$162
$134 $123 $118 $125 $144
$175
$211
$100
$0
2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Foreign Buyers
Residential Buyers
Thousands
$253
$250
$277
$211
$227
$200
$150
$100
$50
$0
Florida Foreign
Buyers
24
Price Ratios
1.40
1.22
1.19
1.20
0.91
0.93
FL Foreign
Buyers/U.S.
Foreign Buyers
FL Residential
Buyers/U.S.
Residential Buyers
1.00
0.80
0.60
0.40
0.20
0.00
FL Foreign
U.S. Foreign
Buyers/FL
Buyers/U.S.
Residential Buyers Residential Buyers
The average and median purchase price of Brazilian buyers were higher than those
of the other major foreign buyers in 2016.11 This may be in part because they purchased
properties in areas such as Miami-Fort Lauderdale-Palm Beach and Orlando-KissimmeeSanford where property values are higher compared to other metropolitan areas.
Average Purchase Prices in Thousand Dollars
$1,000
$866
$800
$600
$671
$499
$588
$492
$377 $343
$400
$390 $405
$290
$200
$0
Argentina
Brazil
Canada
2015
United
Kingdom
Venezuela
2016
The median is the middle value of the distribution. Half of all purchases fall below this value and half are
above this value. Because home values tend to skew to the higher end, the median is often a better reflection
of typical market activity. The mean or the average price is used to calculate the total dollar volume of
purchases and can be used as a measure of central tendency. It is found by summing the responses and
dividing by the number of responses.
11
25
$451
$399 $392
$400
$305
$300
$268
$220
$189
$200
$273 $276
$217
$100
$0
Argentina
Brazil
Canada
2015
United
Kingdom
Venezuela
2016
About 72 percent of foreign buyer purchases were all-cash sales. Foreign buyers
tend to make an all-cash purchase because they may not have the required U.S. credit
history to obtain a mortgage from a U.S. source.
Among the major foreign buyers, Canadian foreign buyers were the most likely to
make an all-cash purchase.
Financing Among Florida's Foreign Buyers
100%
50%
3%
14%
2%
13%
1%
14%
2%
21%
2%
23%
82%
84%
82%
74%
72%
0%
2012
2013
2014
2015
Dont Know
Investors/Other
Mortgage Financing - Buyer's Home Country
Mortgage Financing - U.S. Sources
All Cash
2016
26
3%
15%
4%
19%
80%
30%
3%
1%
26%
26%
71%
69%
60%
40%
74%
81%
63%
20%
0%
Argentina
Brazil
Canada
All Cash
Mortgage Loan from Home Country
United
Venezuela
Kingdom
Mortgage Loan from U.S. Sources
Investor/Others/Don't Know
50%
40%
30%
27%
30%
20%
15%
19%
20%
15%
10%
10%
1%
5%
3% 5%
3% 3%
Other
Don't Know
0%
Vacation Residential Vacation
Primary Property
Home Investment Home and Residence for Use by
Residential
Student(s)
Investment
Florida Foreign Buyers
27
5%
4%
4%
4%
5%
80%
17%
25%
2%
4%
10%
50%
40%
17%
16%
11%
Dont Know
Other
22%
24%
14%
51%
11%
16%
Primary Residence
40%
30%
56%
20%
10%
5%
2%
11%
70%
60%
3%
3%
42%
34%
20%
17%
0%
Vacation Home
Argentina
Brazil
Canada
United Venezuela
Kingdom
Type of Property
More than half (52 percent) of foreign buyers in Florida bought a townhouse or
condominium, higher than the 29 percent share among all foreign buyers who purchased
property in the United States. Most of Floridas foreign buyers purchased townhomes and
condominiums, perhaps because they intended to use the property for vacation, residential
rental, or both uses, rather than for primary residence. Another factor that might have led
foreign buyers to purchase townhomes and condominiums was the urban location in which
many were searching (see below).
Type of Residential Property Foreign Buyers Purchased
65%
70%
60%
50%
44%
39%
40%
30%
19%
20%
13%
10%
10%
2% 2%
3% 4%
Residential
Land
Other
0%
Detached
Single-Family
Townhouse
Condominium
Among the major buyers, United Kingdom buyers had a preference for detached
single-family properties, while other buyers preferred condominium properties.
28
4%
3%
5%
5%
Other
17%
62%
Residential Land
9%
9%
17%
46%
6%
45%
50%
72%
34%
41%
Brazil
Canada
14%
Argentina
25%
Condominium
27%
Townhouse/Rowhouse/Duplex
United Venezuela
Kingdom
Detached Single-Family
Location Preference
Floridas foreign buyers appear to have an increasing tendency to locate in a city or
urban area. In 2016, 40 percent of Floridas foreign buyers purchased their property in a
central city or urban area, up from 25 percent eight years ago. Meanwhile, the fraction of
foreign buyers who purchased in a resort area declined to 14 percent from 33 percent in
2008. The fact that fewer foreign buyers hail from Canada and the United Kingdom, who
tend to purchase properties for vacation use, may help explain the declining share of
foreign buyers in resort areas.
33%
70%
60%
9%
50%
40%
33%
31%
8%
32%
30%
7%
37%
32%
25%
6%
8%
5%
27%
27%
25%
19%
14%
4%
10%
10%
30%
30%
35%
36%
39%
30%
20%
10%
25%
29%
26%
2008
2009
2010
35%
39%
2011
2012
47%
30%
26%
2013
2014
40%
0%
Central city/urban area
Suburban area
2015
2016
Resort area
29
Buyers from the Latin American preferred to locate in the central city, and buyers
from Canada and the United Kingdom tended to locate in suburban and resort areas.
Location Preference Among Florida's Major Foreign Buyers
100%
80%
15%
3%
70%
24%
90%
13%
6%
23%
50%
26%
8%
41%
40%
30%
30%
11%
29%
60%
4%
6%
58%
37%
65%
52%
20%
24%
25%
Canada
United Kingdom
10%
0%
Argentina
Central City/Urban Area
Brazil
Suburban Area
Venezuela
Resort Area
41%
44%
40%
30%
30%
26%
21%
24%
20%
8%
10%
6%
0%
Desirable Location Secure Investment
2015
Profitable
Investment
Other/Don't Know
2016
30
The vast majority of buyers, 92 percent, visited Florida before making a purchase
(97 percent in 2015).
Number of Times International Client Visited Florida
Before Purchasing a Property
27%
30%
25%
28%
26%
21%
19%
17%
20%
15%
5%
8%
7%
8%
10%
12%
10%
5%
4%
3%
2%2%
0%
0
2015
2%
1%
5 to 7 8 to 10 11 to 15 More
than 15
2016
28%
27%
21%
80%
60%
23%
21%
25%
22%
46%
49%
52%
54%
47%
2008
2009
2010
2011
2012
30%
23%
27%
21%
30%
28%
23%
24%
52%
47%
48%
54%
2013
2014
2015
2016
22%
25%
40%
20%
0%
Yes
III.
No
Dont Know
For the first time, the 2016 survey gathered information on Florida residents
interested in purchasing property abroad. Among respondents, 14 percent reported that
they had a client who was seeking to purchase property in another country, the same as the
national rate. Five percent of respondents referred the interested buyer to a business
31
contact outside the United States, three percent helped the client directly, and two percent
referred the client to a business contact in the United States who works with international
clients. Four percent of respondents reported that they had a client interested in
purchasing property abroad but could not refer the client to anyone to assist in the
purchase process.
Referrals of Florida Residents Interested in Purchasing Property Abroad
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
86%
5%
4%
3%
2%
10%
7%
6%
5%
4%
4%
4%
4%
3%
3%
2%
2%
2%
2%
32
Most clients were interested in residential property (79 percent), and detached
single-family homes (45 percent) and condominiums (36 percent) were the preferred
types of properties among residential buyers. Most clients (84 percent) intended to use the
property for vacation, residential rental unit, or both uses.
Type of Property U.S. Residents Were Interested in
Purchasing Abroad
Don't Know
14%
Commercial
Property
7%
Residential
Property
79%
Other
2%
Detached
Single-Family
45%
Townhouse/Rowhouse/
Duplex
12%
33
Other
1%
Primary
Residence
13%
Vacation Home
for
Family/Friends
37%
Both Vacation
Home and
Residential
Rental
28%
Residential
Rental
19%
IV.
77%
61%
53%
26%
2008
69%
63%
61%
54%
52%
23%
2009
28%
2010
Florida
28%
2011
48%
35%
27%
2012
27%
2013
28%
2014
2015
31%
2016
United States
34
52%
50%
40%
31%
30%
20%
10%
7%
4%
9%
5%
12%
6%
9%
4%
6 to 10
2015
2016
11 or
more
0%
0
9%
8%
38%
50%
45%
12%
8%
48%
32%
13%
7%
49%
31%
9%
8%
18%
14%
38%
40%
45%
29%
0%
2011
2012
2013
2014
2015
Not Applicable (Less Than One Year In Business )
Decreased
Stayed About The Same
Increased
18%
18%
42%
22%
2016
35
50%
16%
9%
29%
46%
20%
8%
21%
5%
35%
35%
38%
39%
23%
8%
32%
32%
14%
40%
9%
22%
29%
37%
28%
25%
0%
2011
2012
2013
2014
2015
Not Applicable (Less Than Five Years In Business )
Decreased
Stayed About The Same
Increased
2016
29%
22%
12%
11%
6%
6%
3%
3%
2%
5%
36
38%
29%
Realtor.com
13%
Local MLS
3%
3%
Commercial Listing
1%
Other Sources
Dont Know
5%
8%
7%
5%
7%
7%
80%
33%
60%
10%
5%
39%
38%
47%
47%
2012
2013
13%
7%
9%
4%
4%
3%
26%
31%
61%
63%
2015
2016
44%
40%
20%
56%
37%
0%
2011
A Few Problems
2014
Significant Problems
Other
37
41%
40%
35%
30%
30%
39%
33%
33%
33%
36%
39%
24%
25%
20%
15%
10%
5%
0%
2008
2009
2010
2011
2012
2013
2014
2015
2016
27%
10%
21%
10%
19%
8%
11%
6%
83%
37%
21%
9%
14%
63%
69%
73%
2011
2012
2013
48%
70%
0%
2014
2015
2016
38
17%
8%
9%
18%
21%
19%
20%
20%
19%
8%
10%
9%
12%
8%
13%
8%
13%
10%
21%
28%
40%
20%
0%
28%
25%
9%
15%
7%
17%
19%
18%
13%
31%
30%
17%
42%
32%
26%
22%
19%
19%
19%
6%
8%
8%
10%
12%
11%
12%
16%
18%
2008
2009
2010
2011
2012
2013
2014
2015
2016
Less than 1
V.
28%
16%
13%
5%
16%
25%
1 to 5
6 to 10
11 to 15
16 to 20
More than 20
CONCLUDING COMMENTS
Amid slower economic growth, the appreciation of the dollar and strong price
growth in many metropolitan areas amid lack of inventory, Florida REALTORS saw a
decline in business transactions involving international clients. Still, foreign buyers were a
significant source of business in Florida when compared against the national performance.
The future growth of business with international clients will be strongly dependent
on global economic conditions and the real estate conditions in Florida, mainly prices and
availability of supply. Floridas natural endowmentsits warm climate, beauty of the land,
and proximity to Latin America, are expected to help keep Florida a top destination for
foreign buyers.
The increasing entry of new agents may be reflective of their positive expectations
of Floridas residential market. However, this also indicates the opportunity to train new
Florida REALTORS members in cultivating and growing their business with both domestic
and international clients.
39
214,885
22%
47,000
$412,100
$19,368,700,000
$102,199,522,842
387,161
19%
12%
Source: NAR's 2016 Profile of International Activity in U.S. Residential Real Estate
Source: NAR's 2016 Profile of International Activity in U.S. Residential Real Estate
Mutiply Lines 1 and 2
Florida Survey of International Home Buying Activity, 2016
Mutiply Lines 3 and 4 (Sales = # of units x mean price)
Dollar volume of closed sales for single-family homes, condominiums/townhomes, mobile/manufactured homes. Source of data: Florida Realtors
Closed sales for single-family homes, condominiums/townhomes, mobile/manufactured homes. Source of data: Florida Realtors
Line 5 divided by Line 6
Line 3 divided by Line 7
4%
$1,091,000
2,000
$2,182,000,000
40
The 2005, 2007, 2008 surveys covered only Type A international clients, those who
primarily resided abroad and who were purchasing U.S. property for vacation or
investment purposes. From 2009 onwards, the survey asked about clients who are
citizens of another country, a definition that includes Type A clients and non-U.S.
citizens such as immigrants and those residing in the United States on work or
student visas (Type B). No survey was held in 2006.
The 2005, 2007, 2008, 2009 estimates of Floridas international sales (units, dollar
volume, and share to Floridas closed sales) were estimated using Florida survey
data. From 2010 onwards, when NAR started to generate the estimate of
international sales in the United States (national estimate), the number of
international sales (in units) in Florida were estimated based on Floridas share of
the national estimate. However, the average price and the distribution of Floridas
foreign buyers across metro areas were taken from the Florida surveys.
From 2005-2015, estimates of international sales included some commercial
purchases. In 2016, the estimate only included foreign buyer purchases of
residential property, yielding a better estimate that can be compared to total
existing home sales.
The 2016 survey covers transactions during the 12-month period, August 2015July
2016 while previous surveys covered transactions from July of the previous year to
June of the current year. The impact of this change is likely to be minimal because
the seasonal difference between the JulyJune period and the AugustJuly period is
not likely to be significant.
Starting in the 2015 survey, the responses were weighted to correct for over- or
under- response from a metro area. The weight factor wi is equal to the number of
members in area i divided by the number of respondents in area i. Data on Florida
REALTORS membership was provided by the association.
Starting in 2015, the highest purchase price was capped at $5 million, from $1.3
million in previous surveys. The mean or the average price is used to calculate the
total dollar volume of purchases. The mean can be used as a measure of central
tendency. It is found by summing the responses and dividing by the number of
responses. However, because home values tend to skew to the higher end, the
median is often a better reflection of typical market activity. The median is the
middle value of the distribution. Half of all purchases fall below this value and half
are above this value.
Some metropolitan statistical areas (MSAs) were not listed separately in the 2015
survey or because of a change in the MSA delineation (specifically, Flagler County
was delineated as part of the Deltona-Daytona Beach-Ormond MSA in 2013 per OMB
Bulletin 13-01 dated February 28, 2013, which Florida REALTORS used starting in
2015). In the table below, these areas are marked with an asterisk under the column
2016 Survey.
41
2015 Survey
Cape Coral-Fort Myers
Fort Walton beach-Crestview-Destin
Deltona-Daytona Beach-Ormond Beach
Gainesville
Jacksonville-St. Augustine
Lakeland-Winter Haven
Miami-Miami Beach
Fort Lauderdale
Palm Beach
Naples-Marco Island
Bradenton-Sarasota-Venice
Ocala
Orlando-Kissimmee
Panama City-Lynn Haven
Pensacola-Ferry Pass-Brent
Port St. Lucie
Sebastian-Vero Beach
Tallahassee
Tampa-St. Petersburg-Clearwater
Other
2016 Survey
Cape Coral-Fort Myers MSA (Lee County)
Crestview-Fort Walton Beach-Destin MSA (Okaloosa and Walton counties)
Deltona-Daytona Beach-Ormond Beach MSA (Flagler and Volusia counties)*
Gainesville MSA (Alachua and Gilchrist counties)
Homosassa Springs MSA (Citrus County)*
Jacksonville MSA (Baker, Clay, Duval, Nassau, and St. Johns counties)
Lakeland-Winter Haven MSA (Polk County)
Miami-Fort Lauderdale-West Palm Beach MSA (Broward, Miami-Dade, and Palm Beach counties)
* MSA is not listed separately in the 2015 FL survey or because of a change in MSA delineation (specifically, Flagler County was delineated as part of
Deltona-Daytona Beach-Ormond MSA in 2013 per OMB Bulletin 13-01 dated February 28, 2013 which Florida REALTORS used starting in 2015.
42