JTHS Council of the MIAMI Association of REALTORS - Jupiter, Tequesta, Hope Sound

     

                

Canadian Buyers a Top Market for South Florida Real Estate

by | Sep 02, 2015

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Canadian home buyers purchase the fifth-most South Florida real estate among all foreign countries, according to the 2014 Survey of International Home Purchases conducted by the National Association of REALTORS® (NAR) for the MIAMI Association of REALTORS® (MIAMI). The North American nation of 35 million residents registered 7 percent of all foreign South Florida deals last year. Venezuela, Argentina, Brazil and Colombia comprise South Florida's top-four foreign markets.

Miami's tropical climate, resort lifestyle, global business center, and world-class shopping are some reasons why Canadians are buying properties and relocating their families here. The top list of South Florida international buyers in 2014:

Country Percentage of South Florida foreign sales
1. Venezuela 16%
2. Argentina 12%
3. Brazil 11%
4. Colombia 8%
5. Canada 7%
6. France 5%
7. Mexico 4%
8. Italy 3%
8. Ecuador 3%
8. Peru 3%
8. Spain 3%

Canadians Lead All Foreign Buyers in Broward County
Canadians registered 18 percent of all foreign real estate purchases in Broward County, the most among all global consumers. Venezuela and Argentina rank second and third, respectively, in Broward with 16 and 13 percent of all deals.

Canadians have a lower percentage of purchases in Miami-Dade County, accounting for 5 percent of all foreign transactions. Canadians rank sixth among global consumers in Miami-Dade. With 17 percent of all global transactions, Venezuela ranks as the top market in Miami-Dade.

Canadians spend the sixth-highest purchase price on South Florida properties among all foreigners, spending $310,000 on average. The average sale price for all buyers in Florida is $245,000.

  Country Avg. Purchase Price for
South Florida Real Estate
1 Brazil $495,000
2 France $424,000
3 Colombia $420,000
4 Venezuela $378,000
5 Argentina $372,000
6 Canada $310,000

All-Cash Buyers
About 84 percent of all Canadian buyers pay all-cash for South Florida real estate. That ties for third with Venezuela among all international Miami buyers. France (96 percent) has the highest percentage. Argentina (88 percent), Venezuela (84 percent), Brazil (77 percent) comprise the rest of the top-four.

About 81 percent of international buyers in Miami and Broward Counties paid all-cash, compared to 60 percent of international buyers purchasing across the U.S.

Canadians Prefer to Buy Condos in Resort Areas
About 38 percent of Canadian clients bought in resort areas, the highest area recorded. About 31 percent of Canadians bought in central city and another 31 percent bought in suburban areas. In terms of type of property, condos/apartments were the top choice. About 82 percent of Canadians bought South Florida condos. Only 12 percent purchased single-family homes; 6 percent made townhome buys.

Vacation Homes are a Big Draw for Canadians
Most Canadian buyers intend to use their South Florida properties for vacation reasons, according to the 2014 Survey of International Home Purchases conducted by NAR for MIAMI. About 39 percent of South Florida Canadian buyers said they desired a vacation home. About 35 percent wanted a vacation and rental property; 16 percent wanted a rental for investment, 3 percent bought for retirement, and 3 percent listed unknown reasons.
About 52 percent of Canadian buyers intended to use their South Florida property for three to six months. About 19 percent planned one to two months of use, 13 percent said less than a month, six percent listed more than six months, and 15 percent listed unknown time period.

All-Year Sunny Weather
South Florida's tropical climate is one of the top draws for Canadians. With an average temperature of 75 Fahrenheit/ 23 Celsius, Miami is the only major "subtropical" city in the continental U.S. In comparison, the average annual temperature in Canada's capital of Ottawa is a balmy 51.62 Fahrenheit/ 10.9 Celsius, according to Environment Canada data.

February weather shows an even greater disparity between Miami and Canada's capital city. On Feb. 15, 2015, Miami registered a high of 76 degrees. On the same day in Ottawa, overnight temperatures plummeted to minus-13 Fahrenheit/minus-25 Celsius.

The disparity in weather is one reason why many retired Canadians purchase second homes in South Florida. Before the winter arrives in Canada, these "snowbirds" relocate to their Miami and Fort Lauderdale homes and live up to six months here. More than a million Canadians over 55 years old have adopted the "snowbird" lifestyle, spending the winter months in Florida.

Outdoor activities
South Florida's all-year warm weather and miles of coastline allows for a bevy of outdoor and boating activities. Greater Miami has 84 miles of Atlantic Ocean coastline & 67 square miles of inland waterways & more than 15 miles of world-famous beaches. Miami is a leading global city with many resort qualities. Look no further than its cruise industry. Nicknamed the "Cruise Capital of the World," South Florida cruise lines serve more than 4 million passengers a year.

Fort Lauderdale in Broward County enjoys a reputation as one of the globe's preeminent international yachting centers. The city's network of canals makes it a boat lover's dream. The draw is just one reason why Canadians lead all foreign buyers in Broward County.

World-Class Amenities
With world-class amenities like the Pérez Art Museum Miami and the Adrienne Arsht Center for the Performing Arts in downtown Miami and four major professional sports teams, South Florida offers international and domestic buyers a bevy of culture, arts, and entertainment. Basketball's Miami Heat, baseball's Miami Marlins and football's Miami Dolphins have each won championships.

South Florida' professional hockey team, the NHL's Florida Panthers, play their home games in Broward County. This is a big lure for residents from Canada as hockey is the national sport there. Broward is also home to the Broward Center for the Performing Arts.

Direct Flights
Miami International Airport (MIA) offers more than 215 non-stop flights to 147 cities, including 95 international destinations. Fort Lauderdale-Hollywood International Airport (FLL) offers non-stop flights to more than 100 cities, including 50 foreign stops.

Boosting the Market
Miami's growing number of international home buyers have benefited the region and its residents. The buyers have enriched Miami's culture, helped turn our region into a year-round destination, inspired commercial and residential development, and helped lure some of the world's top entrepreneurs and international businesses.

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