Article: Florida still No. 1 with foreign home buyers

The Miami Herald last week published an article commenting on a recent study of foreign buyers in the U.S. released by the National Association of Realtors (NAR). The study, of about 4,000 realtors across America and conducted over a year to year end May 2008 , revealed a number of interesting facts about us foreign buyers:

• Florida is the most popular U.S. state for foreign buyers, accouting for 25.4% of all purchases (other popular states are California, Arizona and Texas)
• UK citizens are second in the league table of foreign buyers (top were Canadians, third Mexicans)
• Of these British buyers, 42% chose to buy in Florida (compare this with Canadian buyers - 33% of them chose Florida)
• 40% of foreign buyers pay cash (compared to just 7% of U.S. buyers)
• The average cost of a property bought by a foreign buyer is 36% higher than the average cost of a property bought by a domestic buyer
• The average property bought was a single-family home for $297,400, intended for use as a holiday home

However, overall, the study also revealed that there is currently a downturn in the number for foreign purchases. 26% of realtors revealed that they had at least one foreign client in; this figure was at 33% the previous year.

The main reason for this decline is presumed to be that foreign buyers, just like domestic buyers, are waiting to see a further fall in prices before committing to making a purchase. Other factors that may put off foreign buyers include immigration laws and property taxes.

Article: Florida still No. 1 with foreign home buyers (7th August 2008, Miami Herald)
Also: Foreign investors slow to buy U.S. real estate (14th August 2008, The Star Ledger)