SF benefits as international home buys in U.S. soar to $82.5 billion

Miami /
Jun.June 11, 2012 02:15 PM

International investors encouraged by record affordability and fear of a European collapse purchased $82.5 billion of residential real estate in the U.S. from March 2011 to March 2012, according to a National Association of Realtors survey cited by the Wall Street Journal. This comes as a 24 percent, or $18.5 billion, increase from the year period ending in March 2011. Approximately 55 percent of the foreign investment came from just five countries: Canada, China, Mexico, India and the United Kingdom, with Canadians representing the largest share of U.S. investment, nearly 25 percent. Similarly, five states accounted for 55 percent of the international sales: Florida, California, Texas, Arizona and New York.

The influx of foreign buys is having a particularly important impact on Florida’s housing market as South Americans, Canadians and Europeans bring money and interest back to luxury developments crippled by the housing bubble. Now the condo inventory in hot spots like Miami has fallen from a supply of close to 25,000 three years ago to just a few thousand. “They’re buying them [luxury condos] two and three at a time and paying cash,” said Realogy CEO Richard Smith.

Almost half of these investors identify themselves as temporary visa holders or recent immigrants to the U.S., although the other half say that they are permanent residents of foreign nations that spend less than six months each year in America.

The perception of stability U.S. real estate holds among foreign buyers appears to be behind the surge. Some 50 percent of those surveyed said that they viewed U.S. real estate as secure and profitable, while around 40 percent claimed that the desirability of location was the most important factor when they buy. International investors “are either looking for safe havens or bargains, so we’re seeing it at both ends of the spectrum,” said Kenneth Rosen, University of California, Berkeley’s Fisher Center for Real Estate Research chairman. [WSJ]


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...