MIAMI — South Florida international home sales and dollar volume jumped double digits year-over-year in 2022, according to the latest Profile of International Home Buyers of the MIAMI Association of Realtors (MIAMI) released today by MIAMI Realtors and the National Association of Realtors (NAR). The 13th annual report, which includes nearly 60 pages of data on foreign home buyer purchases in South Florida, details the robust return of global home buyers to America’s No. 1 international market.
Foreign homebuyers purchased $6.8 billion of South Florida residential properties in 2022, up 34% from $5.1 billion in 2021. The 2022 total also topped 2020 ($5.6 billion). Global buyers bought 9,400 South Florida properties in 2022, up 25% year-over-year from 7,500 in 2021, compared to an 8% drop nationally. It marked the most Miami foreign buyer purchases since 2019.
“Global home buyers love Miami, and now that the U.S. border has been re-opened for more than a year and pandemic protocols are being relaxed, we are seeing a major surge in international homebuying activity in South Florida,” MIAMI Chairman of the Board Fernando Arencibia Jr. said. “What stands out to me is the diversity of countries purchasing in South Florida. Buyers from 54 countries purchase Miami real estate. Miami is not just a gateway to Latin America; it is a gateway to the world.”
The profile surveyed MIAMI members’ international residential transactions for the one-year period from August 2021 to July 2022.
South Florida Registers More than Half of all Florida International Home Sales
Florida is the top U.S. destination for foreign buyers (24% of all sales), according to NAR’s 2022 Profile of International transactions in U.S. Residential Real Estate. Florida has been the No. 1 state for foreign home buyers for the last 14 years.
More than half of all international home sales (52%) in Florida are in Miami-Fort Lauderdale-West Palm Beach, according to the 2021 Florida Realtors’ annual Profile of International Residential Real Estate Activity in Florida. Florida Realtors hasn’t released its 2022 study.
One in five of all U.S. international home sales happen in Florida and one in two in Florida are in the Miami metro market.
South Florida secures about 10% of all international home sales in the entire U.S. annually.
South Florida Foreign Homebuyer Market Share is Five Times Larger than the U.S. Figure
South Florida foreign buyers purchases accounted for 17% of total dollar volume and 16% of all South Florida residential properties sold in 2022, according to the MIAMI and NAR report. No other market in the U.S. has those figures.
At 17%, South Florida’s foreign homebuyer market is more than five times larger than the national figure (3%).
Miami-Dade County Has the Largest Share of South Florida Foreign Buyers
Miami-Dade County accounted for the largest share of South Florida’s foreign buyers (67% in 2022; 65% in 2021). Broward County saw the same share (27%) in 2022 and 2021. Palm Beach County had 2%, down from 3% in 2021.
The foreign buyer market share of total sales in each county in 2022 are: Miami-Dade County (14%), Broward County (12%) and Palm Beach County (7%).
Argentina: Top Foreign Country Buying South Florida Real Estate
Argentina once again finished as the top foreign country purchasing South Florida real estate in 2022. It is the third consecutive year Argentina finished No. 1.
The top countries of origin for consumers purchasing properties in South Florida are:
1. Argentina (16% of South Florida foreign purchases)
2. Colombia (13%)
- Peru and Canada (8% each)
4. Venezuela, Mexico, Chile and Brazil (6% each)
5. France and Italy (3% each)
These top tier countries of origin — Argentina, Colombia, Peru, Canada, Venezuela, Mexico, Chile, Brazil, France and Italy — account for 75% of all South Florida international closed sales.
South Florida’s foreign buyers come from 54 countries. Other U.S. markets are often limited to two or three countries. The diversified number of markets that purchase in Miami allows the region to always post high global sales because when one foreign market declines, others step up to take its place.
Countries purchasing in Miami include: Argentina, Colombia, Peru, Canada, Venezuela, Mexico, Chile, Brazil, France, Italy, Bolivia, Algeria, Nigeria, Australia, China, India, Russia, Ukraine, Spain, Portugal, Turkey, Poland, Germany, Sweden, Romania, South Africa, Ecuador, Paraguay, Uruguay, Malaysia, Philippines, Hungary, United Kingdom, Costa Rica, Panama, Dominican Republic, Cuba, Haiti, Guyana, Honduras, Israel, Bahamas, Great Britain, Northern Ireland and more.
Argentina is the No. 1 Country Buying in Miami-Dade County
The top countries of origin for consumers purchasing properties in Miami-Dade are:
1. Argentina (13%)
2. Colombia (12%)
3. Mexico and Peru (8% each)
4. Chile, Canada and Venezuela (7% each)
5. Brazil (5% each)
Other countries that purchased properties in Miami-Dade included Italy, France, Costa Rica, Dominican Republic, Ecuador, China, Spain, Bolivia, Honduras, Germany, Russia and Sweden.
Argentina is the No. 1 Country Buying in Broward County
The top countries of origin for consumers buying real estate in Broward County are:
1. Argentina (21%)
2. Colombia (16%)
3. Canada (11%)
4. Peru (8%)
5. Brazil and Venezuela (6% each)
- Chile (4%)
Other countries that purchased properties in Broward included Israel, Bahamas, Dominican Republic, Ecuador, Mexico, France, Romania, Russia, United Kingdom of Great Britain and Northern Ireland.
Colombia is the Top Country Buying in Palm Beach County
The top countries of origin for consumers buying real estate in Palm Beach County are:
1. Colombia (38%)
2. Canada and United Kingdom of Great Britain and Northern Ireland (25% each)
- South Africa (13%)
MIAMI Foreign Home Buyers Spend 36.6% More on Average vs. Nation
Foreign home buyers spend more on real estate than other buyers, and South Florida real estate buyers spend a higher median price than other international buyers in the U.S.
MIAMI international home buyers spent a median price of $500,000 for residential properties in 2022. In comparison, foreign buyers in the United States spend $366,100.
New York: Once Again Top State Purchasing in South Florida
New York ranked as the No. 1 state purchasing in South Florida for the second consecutive year, according to the 2022 MIAMI and NAR Report. New York accounted for 28% of out-of-state buyers in 2022.
New York, California and New Jersey accounted for 51% of all out-of-state buyers in the Miami area in 2022.
A surge of individuals and companies from high-density, high-taxed locations have relocated to Miami over the past two years. Citadel, a multinational hedge fund company that manages $57 billion in assets, relocated from Chicago with plans on developing a $1 billion Miami office tower and Microsoft launching a Latin America hub in Miami are just two examples.
66% of South Florida International Buyers Paid in Cash
According to the new MIAMI and NAR survey, about 66% of all international residential transactions in South Florida were made in all-cash. That’s 50% higher than the percentage of U.S. foreign buyers paying all-cash (44%).
South Florida international home buyers prefer condominiums (58%, significantly higher than the U.S. average of 16%. South Florida global buyers prefer to purchase in the central/urban areas (64%), which they intend to use mainly as residential rental, vacation home or both (72%).
61% of MIAMI Foreign Buyers Visited Florida Only 2 Times or Less Before Purchasing
About 6% of South Florida foreign buyers purchased local homes without even visiting Florida in 2022. About 28% purchased with just one visit to Florida; 27% purchased with two visits; 17% bought after visiting Florida three times. About 78% purchased with three visits or less.
About 55% of MIAMI members worked with an international client in the past 12 months. That’s more than three times the national figure of 17%.
Survey results reflect MIAMI’s commitment to increasing South Florida’s real estate brand worldwide and the Miami real estate market’s position as a top international destination.
MIAMI has 242 partner organizations worldwide and conducts international outreach on a global level.
About the MIAMI Association of Realtors®
The MIAMI Association of Realtors (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 102 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 total real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S. and has official partnerships with 242 international organizations worldwide. MIAMI REALTORS has launched its new YPN Global and will host the first-ever YPN Global Congress on Feb. 12-15, 2023, in Dubai. MIAMI has been selected to host the prestigious FIABCI World Congress on June 5-9, 2023. MIAMI’s official website is www.miamirealtors.com
Originally published at https://www.miamirealtors.com/2022/12/14/south-florida-international-home-sales-dollar-volume-surged-in-2022-new-miami-realtors-international-report-released-today/
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Real Estate - Miami in News originally published at Real Estate - Miami in News