With disappearing home bargains, rising prices and growing economic concerns in their own countries some foreign buyers are slowly losing interest when it comes to buying homes in Florida and other key cities in the U.S.
A few months prior, these expats were considered a major force in the real estate market in some key cities in the U.S. In over a 12 month period which started from March of 2011 to March of this year, foreign buyers spent about $82.5 billion in real estate. This total sale was up by 24% from the previous period data of $66 billion. Yet despite these multibillion earnings, foreign homebuyers only constituted 9% of all residential real estate sales. This report was released by the National Association of Realtors six months ago.
As reported by NAR, foreign buyers attributed only 2% of all homes that were sold monthly. The only exception was for the month of May. These figures were almost similar for the figures back in 2010 where international interest started to increase.
Last July, Trulia had reported a decline in the share of international online house hunters from the 2nd quarter of this year. There was a 10% decline from the period of April 1st to June 30th for foreign searches on their site. This decline in foreign homebuyers is affecting real estate markets with the most positive growth.
Foreign buyers are most attracted when home prices are low but would lose interest when prices rise by at least 15% like what happened in Miami FL and Phoenix AZ.
One of the states that foreign buyers favored was Florida where the weather is warm and experienced the largest declines in home prices. Yet the recent increase in home prices in Florida cities such as Miami and Cape Coral has seen a decline interest in international homebuyers in the past year.
Learn more about Cape Coral properties here.
In a recent survey conducted by the association, they discovered that the number of international buyers in Florida had started to decline. From the period starting June 2011 to June 2012, 19% of total homes sales were bought by foreign home buyers. This figure was down when compared with the previous historical data where it posted a 25% share of home sales
This is not good news to Florida home sellers. Foreign buyers would pay a median price of $194,700 for homes while the regular median home price would be around $125,100. Around 82% sales made by foreign buyers were paid in cash.