For the past 12 months, foreign buyers have been the primary reason the real estate markets in Florida are slowly improving.
There have been 1,500 realtors surveyed from the months of July 2011 to June 2012 regarding their business dealings with foreign buyers. Of the survey results, it has been discovered that 19% of home sales have been attributed in the state of Florida. Overall, the total homes sales nationwide amounted to 26% or a total of $10.7 billion sales generated.
For these international buyers, 34% are in the market for a vacation home, while 26% have responded that the property they are purchasing would be used for investments and 19% will use these both as a vacation home and investment at the same time.
Most of these international customers find the US economy a more stable choice when it comes to owning physical assets than in their respective countries or origin where the economies are constantly shifting.
Most of these foreign buyers have made payments by cash and comprised 82% of the sales. Yet, this figure was down from last year’s reported 86% cash sales. Out of these international buyers, 17% have received mortgage loans as compared to 87% of the total home sales in the country that were eligible for home financing.
Foreign buyers also buy these properties at the higher end of the median prices. In Florida, the median price of a home was $125,000 but for foreign investors it reached the $197,400 range.
Some of these foreign buyers, Canadian customers especially, might now find it difficult to find properties in the U.S. real estate as this sector continues to improve. Canadian buyers have ranked the highest in foreign investors for properties in Florida. The total Canadian buyers have reached 31% but were down from last year’s figure of 39%.
In the Cape Coral – Fort Myers housing segment alone, Canadians ranked first place with a total of 56% in this city alone. The two states that most Canadian buyers find most attractive are Arizona and Florida that were also hardest hit by the real estate crisis.
The reason why these foreign buyers are finding it difficult to obtain a housing loan is because of the different credit ratings they have as compared to the U.S. credit ratings. They don’t have any social security numbers and their credit profiles are different from the credit profiles in the U.S.
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