FEBRUARY 2012 |
www.opp.org.uk WORDS | Sean Lightbown
REPORT
FLORIDA BUYER MARKET | 53
are a major portion of the market for Florida,” and it has been taking a careful look at the property fi gures for this important tourist state in its “2011 Profi le of International Home Buying in Florida.” The fi gures speak for themselves. Roughly a quarter of all sales in Florida go to foreign buyers based overseas which, when you consider that the national fi gure for international buyers across the States as whole is only 3%, is a truly startling number. But who are the buyers in Florida…and what do they want? What are they buying and why are they buying it. And also…what do the agents who are dealing with this surge in business think? What are they expecting to happen next?
Who is buying? Canadians are the top overseas property
Sunshine state recovers A
ccording to the National Association of Realtors (NAR),“international sales
investors in the “Sunshine State,” making up 39% of all international purchases. This is a 3% rise on 2010’s fi gure. Buyers from the UK accounted for 7% last year, down from 15% in 2010. Both Brazil and Venezuela rose from 3% of purchases each in 2010 to 8% and 7% respectively last year. And by geo-political region, it was the North Americans (Canada and Mexico) who accounted for 41% of all overseas purchases in Florida. Latin America took 26% of the market while Western Europe represented 23%. Colin Murphy, director at agency
Torcana, believes that the Brazilian buyer market could outstrip the top two players in the years to come. “The Brazilian buyer market is also going from strength to strength,” he says, “and it could easily surpass Canada in the next 18 months.” However, is the Brazilian buyer boom a new opportunity...or a false dawn? Francisco Angulo, a professional broker for
the main offi ces of the United Team Group of Century United Properties in Weston and Miami Beach, as well as the 2011 National Association of Realtors Regional Coordinator to South America, says that he is “cautious” about the emerging buyer market from South America.
“In the main Brazilians are coming here due to the relative strength of their currency (the real) to the US dollar,” Angulo says. “Especially considering
“The Brazilian buyer market could outstrip Canada and Mexico in the next 18 months”
rising property prices at home they are fi nding it so cheap here comparably.” “However, the concern is that this is just an impact of currency exchange rates. If this fl ips, will they be able to afford the properties? But it is defi nitely
Florida has seen property sales incease for three years in a row now, and overseas buyers are driving the market forward. We have been taking a look at the facts and fi gures behind a major new report from the National Association of Realtors and talking to some leading agents in Miami. Things are defnitely recovering.
good to have new and a more diverse range of investors.” By contrast, Angulo is unequivocal about the longevity and history of the Venezuelan buyer market. “For sure Venezuelan buyers have been great for us for many years. The pattern of investment for them is people looking for second homes.” “The political climate in Venezuela is pushing more dollars into US real estate, and this will continue.” Having served, Angulo tells OPP, “on several NAR committees” and, as “the past Director for RAGFL” he feels close to the buyer mentality. It helps too, of course, that he is “fl uent in Spanish with knowledge of Portuguese and Italian.” It is all about understanding the market in a detailed way.
What are they buying?
The overseas market in Florida is split between condominiums/apartments and detached single-family homes. Nearly half (49%) of properties sold to
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