Thanks to international buyers, home sales in Miami have increased by 15 percent since 2010.
In Miami, pending sales of single-family homes are up 12 percent from a year ago and sales of condominiums are up 18 percent from 2010.
According to the Miami Association of Realtors, approximately 60 percent of sales in the Miami area within the last year were made by buyers from foreign countries.
In May of this year alone, 60 percent of closed condo resales and 90 percent of new condo construction sales in Miami were made by international buyers.
These international buyers are taking full advantage of the declines in U.S. real estate and the U.S. dollar, and finding Miami and other areas in Florida a good place to buy a second home.
With most international buyers making all-cash transactions, it’s helping the cash flow in Miami, and Jack Levine, 2011 chairman of the board of the Miami Association of Realtors, explains the market is on the up and up.
“International buyers increasingly are having a positive effect on the Miami real estate market, as sales continue to exceed last year’s levels, which were boosted by the homebuyers tax credit,” Levine said. “Current figures corroborate the healthy market activity agents are experiencing first hand and the evident demand for local properties.”
Besides buying a second home or having vacation options, many international buyers are motivated by investment opportunities or needs to establish U.S. residency for education and jobs.
According to propertycommunity.com, two important factors for international buyers are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers.
Across the country, transactions initiated by international buyers from March 2010 to March 2011 rose to $82 billion, up $66 billion from the year prior, the National Association of Realtors said.