Foreign Buyers a Stronger Force In California and Florida than New YorkAugust 25, 2016
When we think of foreign investors in the US real estate market, New York City may be the first place that comes to mind. However, it turns out Florida and California actually dominate foreign buyers, and overall the majority of these buyers are from China. Number three is Texas. This trend has continued into 2016.
Foreign buyers are snatching up property across Florida as well as in Southern and Northern California. California continues to be one of the most attractive markets for the Asian buyer. Florida continues to attract foreign buyers who want to get more for their money, as well as serving as the hub for Latin America. According to Miami Realtors, foreign buyers account for 36% of real estate sales in South Florida. Foreign buyers totaled an estimated $6.1 billion (US $) in sales over a 12-month period as of August, 2015 in South Florida.
Despite the economic turmoil across South America, this demographic continues to strongly impact real estate sales across South Florida. One of the big trends we’ve identified are “transnational luxury buyers” looking to lower luxury price points. The attention has shifted away from trophy properties. This class of buyer is looking to purchase in undervalued luxury markets rather than mature markets. The “transnational class” continues to look to the US for safety despite a strong dollar and turbulent markets, and South Florida presents a major stronghold for this buyer.