Broward Council of the MIAMI Association of REALTORS

                                                                                                     

                

  • MIAMI REALTORS® Launches MIAMI Platinum PLUS for its Members

    May 17, 2018
    The MIAMI Association of REALTORS® (MIAMI) is now offering its members subscriptions to MIAMI Platinum PLUS, an exclusive and unparalleled suite of upgraded Realtor products and services, so Realtors can utilize an even higher level of industry tools to improve and expand their business while enhancing the home buying and home selling process for the public.
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  • Miami Luxury Home Sales Soar in 1Q 2018

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    Total Miami luxury home sales surged 12.3 percent in 1Q 2018 as median prices rose for the 25th consecutive quarter, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • MIAMI REALTORS CEO Named to South Florida’s Most Influential Business Women

    May 14, 2018
    MIAMI Association of REALTORS® (MIAMI) Chief Executive Officer Teresa King Kinney was named one of the top 25 Most Influential Business Women in South Florida. The South Florida Business Journal honored Kinney’s strong record of leadership, community involvement and industry innovation at an event on May 11 in Fort Lauderdale.
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  • Miami Luxury Single-Family Home Sales Jump in March

    Apr 23, 2018
    Miami luxury single-family home sales posted double-digit gains as median prices for all properties continued rising in March, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • South Florida Industrial Real Estate Prices, Transactions Rise in 4Q

    Apr 23, 2018
    South Florida industrial real estate prices increased 11.4 percent year-over-year in the 4Q 2017 and the Miami-Dade, Broward and Palm Beach tri-county region posted its second highest industrial transaction volume for the year,
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  • Patricia Anglero Elected 2018 Broward President of the MIAMI Realtors

    Apr 07, 2018
    The MIAMI Association of REALTORS® (MIAMI) has elected Fort Lauderdale broker Patricia C. Anglero as its 2018 Broward Council president. She and all of MIAMI’s leadership boards were installed Feb. 2 at the MIAMI 2018 Inaugural and Awards Celebration.
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  • MIAMI REALTORS Commercial Partners with Research and Data Firm Vizzda to Provide South Florida Commercial Statistics Reports

    Apr 05, 2018
    MIAMI Association of Realtors Commercial (MIAMI Commercial) has formed a strategic alliance with Vizzda (Visual Data) to provide The Quarterly Report – South Florida Commercial Real Estate, which will offer comprehensive commercial research and statistics to MIAMI’s 46,000 members and the consumers they serve.
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  • MIAMI Realtors Commercial Association Rebrands as MIAMI Commercial

    Apr 05, 2018
    The MIAMI Association of REALTORS® (MIAMI) has rebranded its commercial real estate organization, to MIAMI Commercial. MIAMI Commercial’s new name and logo is part of MIAMI’s successful expansion of the commercial reach of the Miami Association of Realtors that enhances the 25-year-old organization, which was formerly the Realtors Commercial Alliance MIAMI (RCA MIAMI).
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  • Miami Condo, Luxury Home Sales Rise in February  

    Mar 21, 2018
    Miami existing condominium and total luxury home sales increased in February, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • Miami Realtors Expands Presence of South Florida Real Estate at Global Expo

    Mar 14, 2018
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  • Colombia Leads Countries Looking for Miami Homes in January

    Mar 13, 2018
    Colombian consumers registered the most international web searches for Miami homes in January, according to a new report by the MIAMI Association of REALTORS® (MIAMI). South Florida remains the most-searched U.S. market by international consumers and a top-five market for homebuyers in the world’s six largest regions, according to January data.
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  • Urgent Legal Alert from Florida REALTORS General Counsel

    Mar 06, 2018
    Recently, Florida Realtors became aware of several lawsuits filed against real estate brokers in Miami Dade and Broward counties concerning allegations of discriminatory advertising—a violation of fair housing laws. Specifically, brokers are being sued for discriminating against tenants with Section 8 vouchers. These violations, however, pertain to local ordinances, not the Federal Fair Housing Act. Under these local ordinances, landlords and Realtors are precluded from discriminating against tenants with Section 8 vouchers, as this falls under the protected class "source of income."
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  • Miami Condo, Single-Family Home Sales Jump in January

    Feb 22, 2018
    Miami existing condominium and single-family home sales rose in January as $1 million-and-up luxury transactions jumped for all properties, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • Colombia Tops Countries Looking for Miami Homes

    Feb 20, 2018
    Colombian consumers posted the most web searches among foreign countries for Miami homes in December, according to a new report by the MIAMI Association of REALTORS® (MIAMI). South Florida finished as the most-searched U.S. market by international consumers and is a top-five market for consumers in the world’s six largest regions, according to December data.
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  • Miami Single-Family Homes Post Fifth Biggest Sales Year in History

    Feb 13, 2018
    Miami recorded the fifth-most annual single-family home sales in county history in 2017 as total dollar volume and median prices rose at year-end and in 4Q 2017, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • MIAMI Realtors Releases New 2017 South Florida International Real Estate Report

    Feb 08, 2018
    Foreign home buyers spent more on South Florida homes and purchased more local residential properties in 2017 than the year before, according to the new 2017 Profile of International Home Buyers of MIAMI Association of REALTORS® (MIAMI) Members conducted by MIAMI and the National Association of Realtors (NAR).
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  • Jorge L. Guerra Jr. Elected 2018 MIAMI Realtors Residential President

    Feb 06, 2018
    The nation’s largest local Realtor association has elected Miami broker Jorge L. Guerra Jr. as its 2018 Residential President. He and the entire Board of Directors were installed Feb. 2 at the MIAMI Association of REALTORS® (MIAMI) 2018 Inaugural and Awards Celebration.
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  • MIAMI Realtors to Honor South Florida Real Estate Industry Leaders

    Feb 06, 2018
    he MIAMI Association of REALTORS® (MIAMI) will honor South Florida real estate’s industry leaders with its 2017 MIAMI Awards at its 2018 Inaugural & Awards Celebration today. “From educator of the year to humanitarian of the year to public policy advocates, the MIAMI Awards honors individuals and groups that made the real estate industry and all of South Florida a better place,” MIAMI CEO Teresa King Kinney said.
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  • Miami Native Brian Sharpe to Lead MIAMI Commercial Realtors

    Feb 06, 2018
    The Realtors Commercial Alliance of the MIAMI Association of REALTORS® (MIAMI) has elected Miami native Brian Sharpe as its 2018 president. He and the 2018 RCA Board of Governors were installed Feb. 2 at MIAMI’s 2018 Inaugural and Awards Celebration.
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  • MIAMI Realtors to Honor South Florida Real Estate Industry Leaders

    Feb 02, 2018
    The MIAMI Association of REALTORS® (MIAMI) will honor South Florida real estate’s industry leaders with its 2017 MIAMI Awards at its 2018 Inaugural & Awards Celebration today.
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Foreign Buyers Strengthen Florida, South Florida Real Estate Market and Economy

by | Jul 08, 2014

International Home Buying Activity in Florida Expected to Remain Strong

Print Version
A new report by Florida TaxWatch confirms the significant impact of foreign real estate buyers in Florida and South Florida and predicts the future demand from this market segment. Foreign buyers have undoubtedly strengthened the Florida housing market and economy – and helped the South Florida market recover from the downturn faster and stronger than any other. Better understanding purchases by international buyers helps businesses and policymakers make decisions that will help diversify and stabilize Florida's economy even further.

The Florida TaxWatch report analyzes data for the most recent five years of sales of Florida homes to non-resident international buyers, using the yearly "profile of International Home Buyers in Florida," produced by the National Association of Realtors. International buyers in Florida accounted for almost $30 billion in purchases over the past three years and is an important component of the housing markets in various metropolitan areas in the state and more prominently in Miami.

Florida is consistently the state with the largest share of real estate sales to international citizens. Within the state, South Florida is the favorite among foreign buyers looking for cultural affinity and an exciting lifestyle unparalleled anywhere else in the U.S. - and at affordable prices.

Florida has long been dependent on its real estate market for growth and stability, as shown in a recent Florida TaxWatch report detailing the impact of housing starts on the Florida economy. International buyers look at the U.S. market as a place where their property rights are secure, and often times invest in a property for both personal enjoyment as well as the investment income.

International Homebuyers' Impact on Florida's Economy

International purchasers of Florida homes have also provide substantial amounts of liquidity to the housing market, especially during times of uncertainty, according to Florida TaxWatch. Over the last five years, all cash sales have accounted for more than 60 percent of total sales in South Florida. In May, cash sales dropped to 55 percent but remain well above the national average of 30 percent. Nearly 90 percent of international buyers, most of whom are not used to financing properties in their home countries, pay all cash when purchasing real estate in the U.S.

The amount of purchases by internationals in Florida has been substantial in recent years, peaking at 36,152 during the period from 2008-2009. A majority of these purchases were cash transactions at a time when credit was difficult to come by for many Floridians, and others around the globe.

The liquidity provided by international buyers benefits Florida homeowners, banks, and state tax collections, thanks to increased real estate sales, the documentary stamp tax revenues that come with those sales, and the economic impact of the new owners coming into the state.

Additionally, the vast majority of international home buyers do not use Florida's schools or social services (such as Medicaid and Medicare), and they do not qualify for homestead exemptions, which means that their homes are taxed at full and ad valorem rates.

Where Do Most International Buyers Originate?

The report emphasizes that certain variables may affect purchases such as currency controls and devaluation, political stability, and the other country-specific variables. For example, there are often concerns about oil pricing, a great international currency earner of the past for Canada. Given the volatility in oil markets, the Canadian Dollar ($CAD) is heavily affected as worldwide oil prices change.

While Canada had been the foreign country that provided the most purchasers of Florida homes, in 2013 buyers from Latin America and the Caribbean countries as a group were the largest, coming in at slightly more than 32 percent. Canadian buyers from European countries accounted for 26.6 percent. These three groups account for 88.3 percent of the purchases of Florida homes by international buyers.

The top international purchasers of Florida home come from Canada, the U.K., Venezuela, Brazil, Argentina, Germany, China, Colombia, France, Peru, and Italy. Purchasers from Venezuela, Brazil, Argentina, China, Colombia, and Peru have generally been increasing since 2008. Substantial decreases are reported for the U.K., and moderate decreases from Germany have occurred in that span.

Foreign Buyers Expected to Continue to Fuel Florida Housing Market, Economy

Florida TaxWatch, using a proprietary stochastic forecasting model, expects a continuation of international home purchasing activity in Florida. An estimated more than 60,000 purchases by non-resident internationals are expected to be transacted during the 2014 through 2016 calendar years. These purchases, along with the associated purchases of furniture and other household goods, entertainment spending, and travel will create jobs that employ Floridians.


Top variables impacting international homebuyers include:

Foreign Buyer Income
Of the top 10 countries who citizens purchase Florida homes, only the Venezuelan economy is predicted to have negative GDP growth, and that economy has expected two-year decrease in GDP. The countries that show the most promise for increasing purchase in Florida are Peru and Colombia – both with growing shares of the market. As Brazil returns to higher growth rates in the future one would expect further increases in market share from Brazilians purchasing homes in South Florida.

Exchange Rates
The level of the exchange rate versus the U.S. dollar is an important part of the relative price that international purchasers pay for homes in Florida. Both French and German purchasers will benefit from strength in the Euro versus last year, as will the British Pound. The largest losers of purchasing power would be Argentines and Venezuelans who were holding their home currencies and who had not already converted to U.S. dollars.

Political and Economic Uncertainty
While difficult to predict, perceived instability in a home country could cause foreign nationals to purchase a Florida home as a portfolio diversification, as a hedge against potential home currency devaluation, or as a place to have secure property rights as a homeowner in the face of rising uncertainty in their home country.

International Visitor Numbers
The number of visitors from a country can be an indication of ease of travel to Florida, something very likely important to potential home purchasers.
Print Version

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