12 Nov Miami, South Florida Real Estate Prospers as Foreign Investors Move In
The 18th Miami International Real Estate Congress was held on the week of November 5, 2012, at the Biltmore Hotel, in Coral Gables. During the expo, Teresa King Kinney, chief executive officer of the Miami Association of Realtors, reported that Miami is the number one location for international residential real estate investors and buyers.
Citing data that came from the Profile of International Home Buyers in Florida 2012, a report from the National Association of Realtors, Kinney concluded that Florida accounted for the largest share (26%) of total U.S. residential home sales to foreign clients. She attributed the international interest to a number of factors, including low home prices, geographic diversity and investment stability.
Kinney continued to explain the perks of international investors within South Florida Markets: “International home buyers always buy for above-median prices.” The average price for Canadian investors lies between $100,000 and $199,999. The average home price paid by Brazilian immigrants ranges between $200,000 and $299,999, according to the previously mentioned study. These purchase prices are helping give rise to an improved housing market within the region.
Cash sales for real estate in Miami-Dade have also become a regular among immigrant investors, as 82% of foreign buyers have purchased residences without mortgage financing. Statistics clarify that 62.4% of the total closed sales in September 2012 were all-cash transactions. These transactions accounted for 43% of all single-family homes and 76% of condominium closings. These numbers are substantially higher than the national average of 26% cash sales in September.
As the supply of available properties is lessening, it is important for investors to consider buying now. In August 2008, there were approximately 46,000 residential properties on the market in Miami-Dade county. As of August 2012, there were between 11,000 and 12,000 available homes. A four month inventory means supply will eventually dwindle, resulting in rising prices.