Florida REALTORS®
2016 Profile of International
Residential Real Estate Activity in
Florida
Conducted by the National Association of REALTORS®
December 2016
ABOUT THE SURVEY
Since 2005, the Research Division of the National Association of REALTORS® has
conducted an annual survey for Florida REALTORS® to gather information about the
interaction of its members with international clients, the challenges and opportunities they
face in serving foreign clients, and the characteristics of foreign buyers purchasing
property in Florida.
The 2016 Profile of International Residential Real Estate Activity in Florida presents
information regarding residential transactions with international clients of Florida
REALTORS® members during the 12-month period of August 2015–July 2016. The 2016
report also presents information on U.S. clients seeking to purchase property abroad. In
this report, the year 2016 refers to the 12-month period August 2015–July 2016, and the
year 2015 refers to the period July 2014–June 2015.
Florida REALTORS® issued the invitation to its members to participate in the online
survey. Over the duration of the survey period from August 9–29, 2016, there were 6,167
members who responded.
The term international or foreign client refers to two types of clients:
o Non-resident foreigners (Type A): Non-U.S. citizens with permanent residences outside
the United States. These clients typically purchase property as an investment, for
vacations, or other visits of less than six months to the United States.
o Resident foreigners (Type B): Non-U.S. citizens who are recent immigrants (in the
country less than two years at the time of the transaction) or temporary visa holders
residing for more than six months in the United States for professional, educational, or
other reasons.
Questions about this report1 may be directed to the Research Division of the National
Association of REALTORS® at [email protected].
Lawrence Yun, Senior Vice President & Chief Economist
Danielle Hale, Managing Director, Housing Research
Gay Cororaton, Research Economist
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
1
Table of Contents
ABOUT THE SURVEY ....................................................................................................................... 1
SUMMARY ....................................................................................................................................... 3
I.
SIZE OF INTERNATIONAL TRANSACTIONS ............................................................................ 5
Economic Environment Effects on International Sales....................................................................................... 8
II.
FOREIGN BUYERS: ORIGINS AND PREFERENCES ................................................................ 11
Origin of Foreign Buyers................................................................................................................................................ 11
Destination of Foreign Buyers..................................................................................................................................... 13
Top Buyers by Metro Area ............................................................................................................................................ 18
Prices and Financing ....................................................................................................................................................... 23
Intended Use of Property .............................................................................................................................................. 27
Type of Property ............................................................................................................................................................... 28
Location Preference ......................................................................................................................................................... 29
Other Characteristics of Foreign Buyers ................................................................................................................. 30
III. FLORIDA RESIDENTS SEEKING TO PURCHASE PROPERTY ABROAD .................................. 31
IV. REALTOR® INTERACTION WITH INTERNATIONAL CLIENTS ............................................ 34
Number and Share of International Clients ........................................................................................................... 34
Change in the Percentage of International Clients.............................................................................................. 35
Source of Client Contact ................................................................................................................................................. 36
Language and Cultural Factors ................................................................................................................................... 37
V.
CONCLUDING COMMENTS .................................................................................................... 39
APPENDIX 1. COMPUTATION OF DOLLAR VOLUME OF FOREIGN BUYER PURCHASES .............. 40
APPENDIX 2. NOTES ON SURVEY AND ESTIMATION METHOD ................................................... 41
2
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


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

Foreign buyer purchases of Florida residential properties decreased to $19.4 billion
($23.7 billion in 2015). This accounted for 19 percent of Florida’s residential dollar
volume of sales (24 percent in 2015). Nationally, foreign buyers comprised seven
percent of the dollar volume of existing home sales.
Foreign buyers purchased 47,000 residential properties (44,000 in 2015), which made
up 12 percent of Florida’s residential market (12 percent in 2015). Nationally, foreign
buyer residential purchases accounted for four percent of existing-home sales.
The dollar volume of purchases decreased even as the number of purchases increased
because the average price of foreign buyer purchases declined to $412,000 in 2016
compared to $539,000 in 2015. The median purchase price also decreased to $253,000
from $297,000. In part, this is due to the smaller fraction of Latin American buyers who
tend to purchase properties at the higher price range.
The appreciation of the dollar affected the decision to purchase, with 58 percent of
respondents reporting the effect was “significant” (52 percent in 2015).
A higher fraction of respondents, 30 percent, reported that Florida’s real estate prices
were more expensive than prices in the buyer’s home country (22 percent in 2015).
Latin America and Caribbean buyers accounted for the largest fraction of Florida
foreign buyers at 39 percent, although they comprised a smaller share than in 2015 (56
percent).
Florida’s foreign buyers come from many countries, and the top five countries of origin
by dollar volume were Canada ($3.0B), Brazil ($2.8B), Venezuela ($1.5B), the United
Kingdom ($1.4B), and Argentina ($1.4B). Altogether, buyers from these countries
accounted for 52 percent of total dollar volume and 48 percent of foreign buyer
purchases.
Foreign buyers purchased property across Florida, but foreign buyers were
concentrated in Miami-Fort Lauderdale-West Palm Beach MSA (52 percent), OrlandoKissimmee-Sanford MSA (12 percent), and Tampa-St. Petersburg-Clearwater MSA
(eight percent).
Most foreign buyers, 72 percent, made an all-cash purchase.
Most foreign buyers, 72 percent, purchased residential property for vacation,
residential rental, or for both uses. Nationally, 44 percent of all foreign buyers
purchased for these purposes.
National Association of REALTORS®, 2016 Profile of International Activity in U.S. Residential Real Estate.
The estimate is based on foreign purchases from April 2015–March 2016.
2
3
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
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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.
Florida’s 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.
Florida Domestic Clients Searching for Properties Abroad




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 Germany—countries that are also origins of
foreign buyers—were 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.
Interaction with International Clients

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
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A lower fraction of Florida REALTORS® respondents, 48 percent, worked with an
international client (69 percent in 2015), Nationally, 31 percent of REALTORS® worked
with an international client.
A smaller share of respondents, 10 percent, had six or more clients (21 percent in
2015). Nationally, the share was five percent of REALTORS®.
A lower fraction of respondents, 64 percent, reported no change or an increase in the
percentage of their clients who are international in the past year (69 percent in 2015).
A lower fraction of respondents, 53 percent, also reported no change or an increase in
the percentage of clients who are international during the past five years (59 percent in
2015).
Personal contacts, previous clients, and business contacts accounted for 68 percent of
referrals or leads. The agent’s firm’s or franchise’s website or social media was the
primary source of online leads, as well as other aggregator websites and Realtor.com.
A higher fraction, 63 percent, reported they have not had problems dealing with
international clients (61 percent in 2015).
A larger percentage of respondents, 39 percent, spoke a language other than English
(36 percent in 2015).
Florida REALTORS® has been gaining new members, with 18 percent of respondents
reporting less than one year of experience as a REALTOR®, up from six percent in 2008.
4
I.
SIZE OF INTERNATIONAL TRANSACTIONS
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 Florida’s 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
$17.1 $17.3 $17.4
$14.5
$15.7
$10.3 $11.2
$10
$5
$2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Foreign buyers purchased 47,000 residential properties, a seven percent increase
from the 44,000 properties purchased in the 12-month period ending in June 2015. The
number of foreign buyer purchases held at 12 percent of Florida’s existing home sales.
Nationally, foreign buyer residential property purchases accounted for four percent of U.S.
total existing home sales.4
The 2016 Florida REALTORS® survey covered the period August 2015–July 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 2005–2015,
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: NAR’s 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 2015—March 2016.
3
5
Number of International Sales in Thousand Units
66.1
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
Share of International Sales to Florida's Existing Home
Sales
70%
52%
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
As Percent of Dollar Volume
The dollar volume of purchases decreased even as the number of purchases
increased, because foreign buyers paid $412,000 on average compared to $539,000 in
2015. The median purchase price also decreased to $253,000 from $297,000.
6
Average and Median Purchase Prices Among Florida
Foreign Buyers in Thousand Dollars
$600
$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
Economic Environment Effects on International Sales
Slower economic growth in many countries, the strengthening of the dollar against
most currencies, and rising prices due to lack of homes being sold on the market created a
more challenging environment for foreign homebuyers in the period August 2015–July
2016. Amid the collapse of oil prices beginning in the third quarter of 2015, the Latin
American and the Caribbean economy contracted, and it is expected to continue to contract
through the end of 2016. Canada’s economy grew at a slower pace in 2015–2016 compared
to 2014, while the euro area also grew at a modest pace.5 Oil-producing economies such as
Canada, Brazil, and Venezuela, who are Florida’s major source of foreign buyers, appeared
to have been adversely impacted by these developments.
GDP Growth Rates
8
7
6
5
4
3
2
1
0
-1
7.3 7.3 7.5 7.5
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
Source: IMF, April 2016 World Economic Outlook
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
Monetary Fund, World Economic Outlook, Aril 2016, downloaded at
http://www.imf.org/external/pubs/ft/weo/2016/01/pdf/text.pdf
8
Reasons For Not Purchasing Property in Past 12 Months
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
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 Florida’s 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
9
International Clients' View of
Florida Real Estate Prices Compared to Home Country
100%
80%
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
About The Same
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 2015–July 2016
80%
70%
60%
50%
40%
30%
20%
10%
0%
73%
29%
22%
15%
12%
10%
10%
8%
5%
5%
1%
Source: NAR calculations
The estimate is based on NAR’s 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.
FOREIGN BUYERS: ORIGINS AND PREFERENCES
Origin of Foreign Buyers
Florida’s foreign buyers come from a wide variety of countries. Buyers from Latin
America and the Caribbean accounted for the largest fraction at 39 percent, although they
comprised a smaller share than in 2015 (56 percent). The recession in Venezuela, the steep
devaluation of the Venezuelan bolivar, and weaker economic conditions in the region likely
account for the decline in purchases in 2016.
European buyers made up the second largest group at 23 percent, followed by
Canadians (North America) at 19 percent.
Buyers from Asia and Oceania accounted for a smaller fraction of overall foreign
buyers at 10 percent, although they have become more prevalent since 2008 when they
comprised only three percent of foreign buyers.
African buyers were one percent of foreign buyers, and eight percent of foreign
buyers were classified as Unknown because the respondent did not identify the region or
country of the foreign buyer.
Origin of Florida's Foreign Buyers
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
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
Asia and Oceania
Europe
Latin America and the Caribbean
North America
Unknown
23%
10%
1%
2016
11
Florida's Major Foreign Buyers
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%
Florida’s 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 Florida’s 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 Florida’s 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.
Dollar Volume of Foreign Buyer Residential Property
Purchases in Billion Dollars
Argentina,
$1.40
Brazil, $2.75
Others, $9.26
Canada, $3.04
United
Kingdom, $1.43
Venezuela,
$1.49
Destination of Foreign Buyers
While foreign buyers purchased property across Florida, buyers tended to
concentrate in a few areas. The Miami-Fort Lauderdale-West Palm Beach MSA accounted
for 52 percent of Florida’s foreign buyers (53 percent in 2015). Its share of foreign buyers
is higher than its 31 percent share of Florida’s existing home sales.7
The Orlando-Kissimmee-Sanford MSA accounted for 12 percent of foreign buyers in
2016 (eight percent in 2015). Its share of foreign buyers is just slightly higher than its 10
percent share of Florida’s existing home sales.
An MSA may account for a large share of Florida’s international sales because of its large share of Florida’s
residential market. To take into account the size effect, we compared the MSA’s share of Florida’s foreign
buyers to the MSA’s share of Florida’s existing home sales. If the foreign buyer share is higher than the market
share, the MSA can be viewed as being relatively attractive to foreign buyers compared to other MSAs.
7
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 Florida’s 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 Florida’s 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 Florida’s 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
Destination of Florida's Foreign Buyers
52.1%
53.4%
Miami-Fort Lauderdale-West Palm Beach MSA (Broward, Miami-Dade, and Palm Beach counties)
Orlando-Kissimmee-Sanford MSA (Lake, Orange, Osceola, and Seminole counties)
Tampa-St.Petersburg-Clearwater MSA (Hernando, Hillsborough, Pasco, and Pinellas counties)
Cape Coral-Fort Myers MSA (Lee County)
North Port-Sarasota-Bradenton MSA (Manatee and Sarasota counties)
Naples-Immokalee-Marco Island MSA (Collier County)
Port St. Lucie MSA (Martin and St. Lucie 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%
Lakeland-Winter Haven MSA (Polk County)
0.8%
0.4%
0.6%
Punta Gorda MSA (Charlotte County)*
0.6%
Sebastian-Vero Beach MSA (Indian River County)
Ocala MSA (Marion County)
Crestview-Fort Walton Beach-Destin MSA (Okaloosa and Walton counties)
Gainesville MSA (Alachua and Gilchrist counties)
Tallahassee MSA (Gadsden, Jefferson, Leon, and Wakulla counties)
Pensacola-Ferry Pass-Brent MSA (Escambia and Santa Rosa counties)
0.5%
1.6%
0.5%
0.4%
0.4%
0.4%
1.3%
0.3%
Homosassa Springs MSA (Citrus County)*
0.3%
0.2%
0.2%
Sebring MSA (Highlands County)*
0.1%
The Villages MSA (Sumter County)*
0.1%
Panama City MSA (Bay and Gulf counties)
Non-MSA
Other area
2016
6.6%
13.4%
2015
15
Distribution of Foreign Buyers vs. Distribution of Dollar Volume of Closed Sales
(Chart 1 of 2)
0.0%
10.0%
Crestview-Fort Walton Beach-Destin MSA (Okaloosa and Walton counties)
0.5%
2.9%
Deltona-Daytona Beach-Ormond Beach MSA (Flagler and Volusia counties)
1.4%
2.7%
Gainesville MSA (Alachua and Gilchrist counties)
0.4%
0.7%
Homosassa Springs MSA (Citrus County)
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%
Miami-Fort Lauderdale-West Palm Beach MSA (Broward, Miami-Dade, and Palm
Beach counties)
31.4%
52.1%
3.0%
5.4%
Naples-Immokalee-Marco Island MSA (Collier County)
3.2%
6.4%
North Port-Sarasota-Bradenton MSA (Manatee and Sarasota counties)
Ocala MSA (Marion County)
30.0%
3.5%
5.2%
Cape Coral-Fort Myers MSA (Lee County)
Lakeland-Winter Haven MSA (Polk County)
20.0%
0.5%
0.9%
Orlando-Kissimmee-Sanford MSA (Lake, Orange, Osceola, and Seminole counties)
Percent Distrbution of Foreign Buyer Residential Purchases
11.5%
9.5%
Percent Distribution of Dollar Volume of Closed Sales
16
Distribution of Foreign Buyers vs. Distribution of Dollar Volume of Closed Sales
(Chart 2 of 2)
0.0%
Palm Bay-Melbourne-Titusville MSA (Brevard County)
Panama City MSA (Bay and Gulf counties)
Pensacola-Ferry Pass-Brent MSA (Escambia and Santa Rosa counties)
Port St. Lucie MSA (Martin and St. Lucie counties)
10.0%
60.0%
2.5%
2.5%
0.8%
1.0%
0.1%
0.2%
0.4%
0.9%
Tampa-St.Petersburg-Clearwater MSA (Hernando, Hillsborough, Pasco, and Pinellas
counties)
Non-MSA
50.0%
0.3%
1.6%
Sebastian-Vero Beach MSA (Indian River County)
The Villages MSA (Sumter County)
40.0%
0.3%
1.0%
0.6%
1.2%
Tallahassee MSA (Gadsden, Jefferson, Leon, and Wakulla counties)
30.0%
1.2%
2.6%
Punta Gorda MSA (Charlotte County)
Sebring MSA (Highlands County)
20.0%
7.7%
13.3%
0.1%
0.3%
1.9%
Percent Distrbution of Foreign Buyer Residential Purchases
6.6%
Percent Distribution of Dollar Volume of Closed Sales
17
Top Buyers by Metro Area
Foreign buyers tend to concentrate in an area for a variety of reasons such as
geographic proximity, cultural similarities, investment opportunities, and the presence of
family or friends.
Latin American and Caribbean buyers were the major buyers in the metropolitan
statistical areas of Miami-Fort Lauderdale-West Palm Beach, Orlando-Kissimmee-Sanford,
and Port St. Lucie.
Europeans and Canadians (North America) comprised the bulk of foreign buyers in
the metropolitan statistical areas of Cape Coral-Fort Myers, Naples-Immokalee-Marco
Island, North Point-Sarasota-Bradenton, Tampa-St. Petersburg-Clearwater, and All Other
Areas.9
Buyers from Asia and Oceania and Europe were the largest groups of buyers in the
metropolitan statistical area of Jacksonville.
Origin of Foreign Buyers in Florida's Metro Areas
Cape Coral-Fort Myers MSA
6%
Jacksonville MSA (Baker, Clay, Duval, Nassau, and St. Johns
5%
counties)
Miami-Fort Lauderdale-West Palm Beach MSA
8%
41%
26%
8%
Tampa-St.Petersburg-Clearwater MSA 5% 15%
All Other Areas 1% 13%
Africa
Asia and Oceania
Europe
39%
18%
13%
54%
41%
6%
Orlando-Kissimmee-Sanford MSA 3% 11%
Port St. Lucie MSA
23%
18%
Naples-Immokalee-Marco Island MSA 3%
North Port-Sarasota-Bradenton MSA
8%
25%
25%
Latin America and the Caribbean
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 Florida’s 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
Major Foreign Buyers in Cape Coral-Fort Myers MSA
Canada
39%
Germany
20%
United Kingdom
7%
Norway
4%
Switzerland
4%
Other
20%
Unknown
6%
Major Foreign Buyers in Jacksonville MSA
Canada
13%
China
8%
Costa Rica
8%
Germany
8%
Israel
8%
Other
41%
Unknown
15%
Major Foreign Buyers in Miami-Fort Lauderdale-West
Palm Beach MSA
Canada
Venezuela
Brazil
Argentina
Colombia
China
Italy
France
Peru
Other
Unknown
13%
12%
12%
9%
8%
3%
3%
3%
3%
28%
6%
19
Major Foreign Buyers in Naples-Immokalee-Marco
Island MSA
Canada
41%
United Kingdom
18%
Germany
10%
Bolivia
5%
Italy
5%
Other
21%
Major Foreign Buyers in North Point-Sarasota-Bradenton
MSA
Canada
40%
United Kingdom
15%
France
10%
Germany
4%
Mexico
4%
Other
Unknown
24%
3%
Major Foreign Buyers in Orlando-Kissimmee-Sanford
MSA
Brazil
United Kingdom
Canada
Venezuela
China
Colombia
Argentina
Germany
Other
Unknown
19%
15%
8%
7%
4%
4%
4%
3%
29%
7%
20
Major Foreign Buyers in Port St. Lucie MSA
Canada
8%
France
6%
Trinidad and Tobago
6%
Brazil
5%
Venezuela
5%
Other
44%
Unknown
26%
Major Foreign Buyers in Tampa-St. PetersburgClearwater MSA
Canada
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
Florida Destinations of Argentinian Residential Buyers
Miami-Fort Lauderdale-West Palm Beach MSA
Orlando-Kissimmee-Sanford MSA
79%
6%
Tampa-St.Petersburg-Clearwater MSA
2%
Jacksonville MSA
2%
Pensacola-Ferry Pass-Brent MSA
1%
Naples-Immokalee-Marco Island MSA
1%
Port St. Lucie MSA
1%
Deltona-Daytona Beach-Ormond Beach MSA
1%
Other
6%
Florida Destinations of Brazilian Residential Buyers
Miami-Fort Lauderdale-West Palm Beach MSA
69%
Orlando-Kissimmee-Sanford MSA
24%
Port St. Lucie MSA
2%
Tallahassee MSA
1%
Cape Coral-Fort Myers MSA
1%
Jacksonville MSA
1%
Tampa-St.Petersburg-Clearwater MSA
1%
Panama City MSA
1%
Other
2%
Florida Destinations of Canadian Residential Buyers
Miami-Fort Lauderdale-West Palm Beach MSA
Tampa-St.Petersburg-Clearwater MSA
Cape Coral-Fort Myers MSA
Naples-Immokalee-Marco Island MSA
North Port-Sarasota-Bradenton MSA
Orlando-Kissimmee-Sanford MSA
Deltona-Daytona Beach-Ormond Beach MSA
Sebastian-Vero Beach MSA
Lakeland-Winter Haven MSA
Jacksonville MSA
Palm Bay-Melbourne-Titusville MSA
Punta Gorda MSA
Ocala MSA
Port St. Lucie MSA
Panama City MSA
Other
3%
2%
2%
2%
1%
1%
1%
1%
1%
7%
7%
6%
5%
14%
36%
11%
22
Florida Destinations of United Kingdom Residential Buyers
Orlando-Kissimmee-Sanford MSA
Miami-Fort Lauderdale-West Palm Beach MSA
Tampa-St.Petersburg-Clearwater MSA
Naples-Immokalee-Marco Island MSA
North Port-Sarasota-Bradenton MSA
Cape Coral-Fort Myers MSA
Jacksonville MSA
Lakeland-Winter Haven MSA
Pensacola-Ferry Pass-Brent MSA
Sebastian-Vero Beach MSA
Port St. Lucie MSA
Palm Bay-Melbourne-Titusville MSA
Deltona-Daytona Beach-Ormond Beach MSA
Homosassa Springs MSA
Other
29%
15%
12%
9%
8%
5%
2%
1%
1%
1%
1%
1%
1%
1%
13%
Florida Destinations of Venezuelan Residential Buyers
Miami-Fort Lauderdale-West Palm Beach MSA
80%
Orlando-Kissimmee-Sanford MSA
Tampa-St.Petersburg-Clearwater MSA
11%
4%
Port St. Lucie MSA
2%
Pensacola-Ferry Pass-Brent MSA
1%
Cape Coral-Fort Myers MSA
1%
Ocala MSA
1%
Deltona-Daytona Beach-Ormond Beach MSA
1%
Other
1%
Prices and Financing
The median price of a property purchased by Florida’s foreign buyers was $253,000,
higher than the median price of $211,000 in Florida’s residential market.10 Florida’s foreign
buyers typically paid 19 percent more than Florida’s residential existing home buyers,
about the same as the national rate of 22 percent.
NAR computed the median price of Florida’s closed sales as the weighted average of the median price of
residential closed sales in Florida’s 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
Median Purchase Prices Among Florida's Foreign and All
Residential Buyers in Thousands Dollars
$400
$300
$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
Median Home Prices Among Foreign and All Residential
Buyers in Florida and the United States in Thousand
Dollars
$300
$253
$250
$277
$211
$227
$200
$150
$100
$50
$0
Florida Foreign
Buyers
U.S. Foreign Buyers Florida Closed Sales U.S. Existing Home
Sales
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
Median Purchase Prices in Thousand Dollars
$500
$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
Don’t Know
Investors/Other
Mortgage Financing - Buyer's Home Country
Mortgage Financing - U.S. Sources
All Cash
2016
26
Financing Among Florida's Major Foreign Buyers
100%
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
Intended Use of Property
Compared to U.S. foreign buyers, Florida’s foreign buyers were more likely to
purchase property for vacation, residential rental, or both uses. Approximately 72 percent
of Florida’s foreign buyers purchased the property for these uses compared to 44 percent
nationally.
Buyers from Canada and the United Kingdom were the most likely to purchase a
property for vacation use. The bulk of buyers from Argentina and Venezuela purchased
property for residential rental purposes.
Intended Use of Residential Property
47%
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
U.S. Foreign Buyers
27
Intended Use of Florida Property by Major Foreign Buyers
100%
90%
5%
4%
4%
4%
5%
80%
17%
25%
2%
4%
10%
50%
40%
17%
16%
11%
Don’t Know
Other
22%
24%
Property for Use by Student
14%
51%
11%
16%
Primary Residence
40%
30%
Both Vacation and
Residential Investment
Residential Investment
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 Florida’s 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
Florida Foreign Buyers
U.S. Foreign Buyers
Among the major buyers, United Kingdom buyers had a preference for detached
single-family properties, while other buyers preferred condominium properties.
28
Residential Property Purchases of Florida's Major Foreign Buyers
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
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
Florida’s foreign buyers appear to have an increasing tendency to locate in a city or
urban area. In 2016, 40 percent of Florida’s 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.
Location Preference of Florida's Foreign Buyers
100%
90%
80%
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
Small town/rural 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
Small Town/ Rural Area
Venezuela
Resort Area
Other Characteristics of Foreign Buyers
Florida’s desirable location appeared to have played a more important factor in
influencing the decision to purchase Florida real estate in 2016 compared to 2015. Among
respondents, 44 percent cited Florida’s desirable location as their clients’ most important
decision factor influencing the decision to purchase Florida property (41 percent in 2015).
Most Important Factor Influencing Foreign Buyer
Decision to Purchase Florida Real Estate
50%
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
1
2
3
4
2015
2%
1%
5 to 7 8 to 10 11 to 15 More
than 15
2016
A higher fraction of respondents, 54 percent, expected foreign retirees to be a
potential pool of buyers.
Are Foreign Retirees A Potential Pool of Buyers
In Your Market?
100%
32%
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
Don’t Know
FLORIDA RESIDENTS SEEKING TO PURCHASE PROPERTY ABROAD
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%
No client who was
Referral to a
Could not refer the Helped the client
Referral to a
interested in
business contact in client to anyone
search directly business contact in
finding property
another country
the U.S. who works
outside the U.S.
with international
clients
Among REALTORS® who had clients interested in purchasing property abroad,
countries in Latin America and the Caribbean generated the most inquiries. Spain, Italy,
Canada, the United Kingdom, France, and Germany—countries that are also origins of
foreign buyers in Florida—were also of major interest.
Top Countries of Interest to Florida Residents Searching
for Property Abroad
12%
10%
8%
6%
4%
2%
0%
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%
Type of Residential Property Florida Residents Were
Interested in Purchasing Abroad
Residential
Land
5%
Condominium
36%
Other
2%
Detached
Single-Family
45%
Townhouse/Rowhouse/
Duplex
12%
33
Why Florida Residents Searched for Residential Property
Abroad
Don't Know
2%
Other
1%
Primary
Residence
13%
Vacation Home
for
Family/Friends
37%
Both Vacation
Home and
Residential
Rental
28%
Residential
Rental
19%
IV.
REALTOR® INTERACTION WITH INTERNATIONAL CLIENTS
Number and Share of International Clients
Amid a tougher economic environment, international transactions accounted for a
smaller share of transactions in 2016 compared to 2015. While 69 percent of Florida
REALTORS® worked with an international client in 2015, only 48 percent of respondents
reported this in 2016. However, this is still notably higher than the national rate of 31
percent.
Share of Florida REALTOR® Respondents Who Had an
International Client in the Past Twelve Months
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
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
The degree of specialization varies, with 11 percent of respondents reporting only
one client and 10 percent reporting six or more clients. In 2015, 21 percent reported
working with six or more international clients.
Number of International Clients Whether or Not Client
Bought Residential Property
60%
52%
50%
40%
31%
30%
20%
11% 12%11% 11%
9%
7%
10%
7%
4%
9%
5%
12%
6%
9%
4%
3
4
5
6 to 10
2015
2016
11 or
more
0%
0
1
2
Change in the Percentage of International Clients
A lower fraction of respondents, 64 percent, reported no change or an increase in
the percentage of their clients who are international in the past year (69 percent in 2015).
A lower fraction of respondents, 53 percent, also reported no change or an increase in the
percentage of clients who are international during the past five years (59 percent in 2015).
How Has the Percentage Of Clients Who Are
International Changed in the Past Year?
100%
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
How Has the Percentage Of Clients Who Are
International Changed in the Past Five Years?
100%
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
Source of Client Contact
Relationships matter in real estate. Personal contacts, previous clients, and business
contacts accounted for 68 percent of referrals or leads. Business contacts in the United
States and abroad are potential sources of client referrals.
Online leads generated 17 percent of respondent clients. The primary source of
online leads was the agent/firm/franchise website or social media, followed by other
aggregators’ websites and Realtor.com.
Source of Referrals or Leads on Florida's Foreign Buyers
Personal Contacts
29%
Referred by Previous Client
22%
Was a Former Client
12%
Website/Internet Organic Search
11%
Website/Internet (Paid Ad)
6%
Walk-in/Open House/Phone Call
6%
From a Business contact in the U.S.
3%
Sings/Ads on Boards or Yard
3%
From a Business Contact Outside the U.S.
Other
2%
5%
36
Source of Online Leads on Florida's Residential Foreign Buyers
Own/Firm/Franchise's Website or Social Media
38%
Other Aggregators' Websites
29%
Realtor.com
13%
Local MLS
3%
Other Online Search
3%
Commercial Listing
1%
Other Sources
Don’t Know
5%
8%
Language and Cultural Factors
Among all respondents, 63 percent reported they did not have problems dealing
with international clients in 2016, slightly higher than in previous survey years. A higher
fraction of respondents reported they were born in the United States, but the share of
respondents who spoke a language other than English also increased to 39 percent.
Extent of Language or Cultural Problems
100%
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
Have Not Had Problems
A Few Problems
2014
Significant Problems
Other
37
Percent of Florida REALTOR® Respondents Who are
Fluent in a Language Other than English
45%
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
Where You Born in the U.S.?
100%
80%
60%
40%
20%
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
No, but came to the U.S. at least 18 years old
No, but came to the U.S. before 18 years old
Yes
Eighteen percent of respondents reported less than one year of experience as a
REALTOR®, a slight increase from 2015 (16 percent) and up notably from six percent in
2008. The entry of new members is reflective of positive expectations of Florida’s real
estate market, but it also indicates the need for training of these new members in tapping
and nurturing international clients.
38
Years as a REALTOR® Among Florida REALTOR®
Respondents
100%
80%
60%
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. Florida’s natural endowments—its 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 Florida’s 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
APPENDIX 1. COMPUTATION OF DOLLAR VOLUME OF FOREIGN BUYER
PURCHASES
Appendix 1
Computation of Residential Purchases of Foreign Buyers in Florida for the 12-Month Period August 2015‒July 2016
Line
1
2
3
4
5
Florida's Foreign Buyer Residential Purchases
Total U.S. Foreign Buyer Residential Purchases
Florida's Share to U.S. Foreign Buyer Residential Purchases (units)
Number of Florida Foreign Buyer Residential Purchases
Average Price of Florida Foreign Buyer Residential Purchases
Dollar Volume of Foreign Buyer Residential Purchases in Florida
Florida's Residential Market
6 Florida's Residential Dollar Volume (Single-Family, Condo/Townhomes, Mobile/Manufactured Homes)
7 Florida's Closed Sales (Single-Family, Condo/Townhomes, Mobile/Manufactured Homes)
Share of Foreign Buyer Residential Purchases to Florida's Residential Market
8 Share of Foreign Buyer Residential Purchases to Florida's Dollar Volume of Residential Sales
9 Share of Foreign Buyer Residential Purchases to Florida's Number of Residential Closed Sales
Notes:
Line 1
Line 2
Line 3
Line 4
Line 5
Line 6
Line 7
Line 8
Line 9
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
Memo Item:Florida's Foreign Buyer Commercial Purchases
Share of Foreign Buyer Commercial Purchases to Total Foreign Buyer Commercial and Residential Purchases
Average Price of Foreign Buyer Commercial Purchases
Number of Foreign Buyer Residential Purchases
Dollar Volume of Commercial Purchases in Florida
4%
$1,091,000
2,000
$2,182,000,000
Source: National Association of REALTORS ®
40
APPENDIX 2. NOTES ON SURVEY AND ESTIMATION METHOD
Some caution needs to be exercised in comparing the annual results because of
changes in the collection of the data and estimation of the volume of sales from
international (foreign) clients:
•
•
•
•
•
•
•
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 Florida’s international sales (units, dollar
volume, and share to Florida’s 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 Florida’s share of
the national estimate. However, the average price and the distribution of Florida’s
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 2015‒July
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 July‒June period and the August‒July 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)
Naples-Immokalee-Marco Island MSA (Collier County)
North Port-Sarasota-Bradenton MSA (Manatee and Sarasota counties)
Ocala MSA (Marion County)
Orlando-Kissimmee-Sanford MSA (Lake, Orange, Osceola, and Seminole counties)
Palm Bay-Melbourne-Titusville MSA (Brevard County)*
Panama City MSA (Bay and Gulf counties)
Pensacola-Ferry Pass-Brent MSA (Escambia and Santa Rosa counties)
Port St. Lucie MSA (Martin and St. Lucie counties)
Punta Gorda MSA (Charlotte County)*
Sebastian-Vero Beach MSA (Indian River County)
Sebring MSA (Highlands County)*
Tallahassee MSA (Gadsden, Jefferson, Leon, and Wakulla counties)
Tampa-St.Petersburg-Clearwater MSA (Hernando, Hillsborough, Pasco, and Pinellas counties)
The Villages MSA (Sumter County)*
Other
* 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