Who buys Miami real estate?

About 60% comes from foreign buyers purchasing Florida vacation homes. The study showed that Florida is leading the nation with 23% of all international buyer purchases in the 12-month period ending in June 2009. The study also showed that Florida real estate is the top choice for European buyers – about 33%, U.K. buyers – about 47%, Latin American buyers – about 45% and Canadian buyers – about 35%.

Miami single family homes

as well as Miami luxury ocean front condos remain to be on the top of the list as favorite habitat for the International buyers. With it’s white sandy beaches, theme parks, top of the line restaurants and South Beach nightlife, Miami Beach is a coveted destination for foreign buyers. Even throughout the downturn in the global economy, Florida’s natural beauty, climate and the overall lifestyle makes it an ideal spot for vacationers and retirees as well. It’s ideal location makes it easily accessible with direct flights from major cities in Europe, Canada, Mexico and South America.

Another reason for Miami’s popularity is that Miami home prices as well as ocean front condo prices have come down considerable in the past few years, making it very affordable for foreign buyers. The prices for Miami luxury condos and Miami waterfront homes are already a bargain by European standards, which are further enhanced by the weakness of the dollar against other major currencies, including Euro, British pound and Canadian dollar. The currency has an additional effect of further reducing the cost of Miami luxury properties.

The NAR (National Association of Realtors) study took a close look at the pricing and found that foreign buyers purchased more expensive properties, on average, than did U.S. buyers. However, the luxury properties in U.S. were less expensive than properties in other countries. In May 2009, the average home price in the U.S. was $218,300 compared with $278,100 in Canada and $237,900 in U.K.

The growing percentage of foreign buyers purchase multiple properties. Current prices are so low, many buy more than one home, investing in the future. However, the major challenges for foreign buyers are U.S. immigration laws, taxes and finance. Under current law, foreigners can not remain in the country for more than six months continuously unless they have a special visa, such as those for students or workers.

We expect to see a strong upturn in activity in the second half of 2010 and the upcoming winter season. Right now many prospects are still “up on the fence� waiting for signs of stability in the U.S. real estate market. As soon as foreign buyers believe the market has bottomed, we will see a significant increase in activity. Then, when prices start moving up again, there will be a flood of buyers. After all, almost everyone wants to own a peace of the dream – Miami luxury condo or Miami waterfront single family home.