Inman News reports that a devalued dollar has provided a number of buyers with more buying power in the Sunshine State, and that foreign buyers are particularly drawn to Florida luxury homes, considering that Florida gives foreign buyers more for their money than their native lands do.
The National Association of Realtors estimated in a report last year that perhaps 15 percent of all homes sold in Florida from May 2004 to May 2005 were purchased by foreign buyers – and real estate professionals say this influx of international buyers continues to leave its mark on the luxury market.The median sales price of homes purchased by foreign buyers in Florida was $299,000, which was 52.4 percent higher than the state's overall single-family median sales price of $196,200 during the survey period for the Realtor group's Profile of International Home Buyers in Florida report.
And about 22 percent of foreign buyers are purchasing homes priced at over $500,000. The report is based on a survey of 986 respondents who closed 1,844 home sales transactions to non-U.S. residents from May 2004 to May 2005.
The U.S. dollar has lost significant worth against the euro, British pound and Canadian dollar in the past five years. One U.S. dollar could buy about $1.60 in Canadian dollars in January 2002, for example, compared to a current value of about $1 U.S. dollar for every $1.11 in Canadian currency.
One U.S. dollar bought almost 1.2 euros in 2002 and is now worth a fraction of the euro. The British pound is worth nearly twice as much as the U.S. dollar, and has hovered around this level for the past couple of years.
The exchange rates have not been as favorable for Latin American buyers, though other factors such as political or financial instability in their home countries have played a role for those buyers.
Article comments
1 - Best Indoor Tanning Lotion
That explains why Florida real estate is increasing so fast. I really do not have a problem with as long as we can go into their countries and buy prime real estate too.
2 - Mr. Real Estate
We can buy real estate in many foreign countries. In fact, I have even had developers from Spain and other countries contact me about marketing their condo projects because they wanted to market them to US buyers. There is a huge market for European real estate, both as investment and second homes, here in the US.
3 - Christopher Rose
Makes like Sonic The Hedgehog and taps foot impatiently...
4 - RJ Elliott
People who are still buying up homes in the Naples market, or the Sarasota market, or the Melbourne/Palm Bay market, as investments, are complete fools.
If the real estate bubble bursts, it will be in markets like these, as well as Las Vegas and Long Island...
5 - RJ Elliott
Oh, and MANY countries do not allow Americans to purchase property...especially in Latin America...
6 - Mr. Real Estate
RJ wrote:
Those areas are sitting now. People who used to buy there have moved to Tampa, Orlando and Jacksonville.
Vegas has been sitting since last year.
7 - Mr. Real Estate
RJ wrote:
Many unreasonable countries, such as those with dictatorships, however, I have clients who own in China, and I'm also well-aware of the very lucrative up-and-coming European real estate market, where investors are buying waterfront condos in the equivalent of the $100K range.
8 - Pasha Tsiorba
Im glad to see more exposure about how important the global markets, especially European and Asian markets are going to play a role in real estate in the US in the coming years.
There is not doubt that this is a rare opportunity to take advantage of the weak dollar coupled with the drop in home prices to steal rare properties in the US at a very deep discount.
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