2017 Profile of International

Residential Real Estate Activity

in Florida

Conducted for Florida REALTORS

by the National Association of REALTORS
October 2017
Florida REALTORS
2017 Profile of International
Residential Real Estate Activity in
Florida
Conducted by the National Association of REALTORS
Research Group

October 2017
 TABLE OF CONTENTS

ABOUT THE SURVEY .......................................................................................................................... 2

SUMMARY ........................................................................................................................................ 3
I. MACROECONOMIC ENVIRONMENT ...................................................................................................... 5
II. SIZE OF INTERNATIONAL TRANSACTIONS .................................................................................. 7
III. FOREIGN BUYERS: ORIGINS AND PREFERENCES ......................................................................... 9
Origin of Foreign Buyers ........................................................................................................................ 9
Destination of Foreign Buyers ............................................................................................................. 12
Major Buyers of Top Florida Destinations ........................................................................................... 14
Major Destinations of Floridas Major Buyers ..................................................................................... 18
Prices and Financing ............................................................................................................................ 20
Intended Use of Property .................................................................................................................... 23
Type of Property.................................................................................................................................. 24
Location Preference ............................................................................................................................ 25
Factors Affecting Decision to Purchase Property in Florida ................................................................ 26
IV. FLORIDA RESIDENTS SEEKING TO PURCHASE PROPERTY ABROAD ............................................ 28
V. REALTOR INTERACTION WITH INTERNATIONAL CLIENTS ........................................................ 30
Source of Referrals or Leads.................................................................................................... 30
Language and Cultural Factors ............................................................................................................ 31
VI. CONCLUDING COMMENTS ...................................................................................................... 34
APPENDIX 1. COMPUTATION OF DOLLAR VOLUME OF FOREIGN BUYER PURCHASES ....................... 35
APPENDIX 2. NOTES ON SURVEY AND ESTIMATION METHOD .......................................................... 36

1
 ABOUT THE SURVEY

Since 2005, the National Association of REALTORS Research Group has conducted an
annual survey for Florida REALTORS to gather information about the interaction of its
members with international clients, the challenges and opportunities they face in serving
foreign clients, and the characteristics of foreign buyers purchasing property in Florida.

The 2017 Profile of International Residential Real Estate Activity in Florida presents
information regarding residential transactions with international clients of Florida REALTORS
during the 12-month period of August 2016July 2017. The 2017 report also presents
information on U.S. clients seeking to purchase property abroad. In this report, the year 2017
refers to the 12-month period August 2016July 2017, and the year 2016 refers to the period
August 2015July 2016.

Florida REALTORS issued the invitation to its nearly 164,000 members to participate in
the online survey. Over the survey period, August 7September 9, 2017, 6,551 members
responded to the survey.

The term international or foreign client refers to two types of clients:

o Non-resident foreigners (Type A): Non-U.S. citizens with permanent residences outside the
United States. These clients typically purchase property as an investment and/or for
vacation or visits of less than six months to the United States.
o Resident foreigners (Type B): Non-U.S. citizens who are recent immigrants (in the country
less than two years at the time of the transaction) or visa holders residing for more than six
months in the United States for professional, educational, or other reasons.

We thank our Florida REALTORS counterpart team for their cooperation: Brad OConnor,
Ph.D., Chief Economist; Cecilia Chirinos, Economic Analyst; and Erica Plemmons, Research
Analyst, who deployed the survey to the members, ensured survey participation, and provided
data on Florida home sales.

National Association of REALTORS Research Group

Lawrence Yun, Ph.D., Senior Vice President & Chief Economist
George Ratiu, Managing Director, Housing and Commercial Research
Gay Cororaton, Research Economist
October 2017

2
 SUMMARY

The economic environment created a mix of opportunities and challenges for Floridas
foreign buyers in 2016 and 2017. Latin American countries faced political and economic
difficulties and weaker currencies in the wake of the collapse in oil prices. Meanwhile, economic
growth strengthened in Canada and the Canadian dollar stabilized against the U.S. dollar. In the
United Kingdom, the economy stayed on course, despite a weaker pound following the U.K.s
decision to leave the European Union (Brexit). In China, capital controls were more tightly
regulated. House prices rose in the United States, including in Florida, but the appreciation was
modest compared to the home price appreciation in Canada. Amid these challenges and
opportunities, overall foreign buyer purchases of Florida residential property increased, with a
decline in the share of buyers from Latin America and Europe, while the share of buyers from
Canada increased and the share of buyers from Asia and Africa remained unchanged.

Residential Properties Purchased by Foreign Buyers

Foreign buyer purchases of Florida residential properties increased to $24.2 billion ($19.4
billion in 2016). This accounted for 21 percent of Floridas residential dollar volume of sales
(19 percent in 2016). Nationally, foreign buyers comprised 10 percent of the dollar volume of
existing home sales.
Foreign buyers purchased 61,300 residential properties (47,000 in 2016), which made up 15
percent of Floridas residential market (12 percent in 2016). Nationally, foreign buyer
residential purchases accounted for five percent of existing-home sales.
The median purchase price among foreign buyers increased to $259,400 ($252,500 in 2016),
in line with the overall increase in the median price of Floridas existing home sales of
$220,100 ($211,500 in 2016). The median price among foreign buyers was 18 percent higher
than the median price of Floridas existing home sales.
Latin American and Caribbean buyers accounted for the largest fraction of Florida foreign
buyers at 34 percent, although they comprised a smaller share compared to the previous
years share (39 percent). On the other hand, the share of buyers from Canada increased to
22 percent (19 percent in 2016). The share of buyers from Europe was unchanged, at 23
percent, as well as the share of buyers from Asia, at 10 percent, and the share of buyers from
Africa, at one percent.
While foreign buyers purchased property across the state, most foreign buyers were
concentrated in five metropolitan areas:
o Miami-Fort Lauderdale-West Palm Beach MSA (53 percent)
o Orlando-Kissimmee-Sanford MSA (11 percent)
o Tampa-St. Petersburg-Clearwater MSA (nine percent)
o Cape Coral-Fort Myers (six percent)
o North Point-Sarasota-Bradenton (five percent).

3
 Most foreign buyers72 percentmade an all-cash purchase (72 percent in 2016).
A smaller fraction of foreign buyers68 percentpurchased residential property for
vacation, residential rental, or for both uses (72 percent in 2016). Nationally, 39 percent of
all foreign buyers purchased for these purposes.
A smaller fraction of foreign buyers 49 percentbought a townhouse or condominium (52
percent in 2016). Nationally, only 29 percent of foreign buyers purchased these types of
properties.
Fewer foreign buyers purchased in a central city/urban area, with the share at 35 percent (40
percent in 2016). Meanwhile, 15 percent purchased in a resort area (14 percent in 2016).
Most foreign buyers93 percentvisited Florida at least once before purchasing a property
(92 percent in 2016).

Florida Domestic Clients Searching for Properties Abroad

A higher fraction than last year17 percentreported that they had a client seeking to
purchase property abroad (14 percent in 2016).
Colombia, Costa Rica, Spain, Canada, and the Dominican Republic were the top countries of
interest in 2016 and 2017.
Most clients75 percentwere interested in residential property (79 percent in 2016).
Most clients75 percent intended to use the property for vacation, residential rental, or
both uses (84 percent in 2016).

Interaction with International Clients

A lower fraction of Florida REALTORS respondents44 percentworked with an

international client in 2017 (48 percent in 2016). Nationally, 29 percent of REALTORS
worked with a foreign client.
Most Florida REALTORS61 percentreported they did not have cultural and language
problems when working with international clients (65 percent in 2016).
Over a third of Florida REALTORS37 percentspoke a language other than English (39
percent in 2016).
Personal contacts, previous clients, and business contacts accounted for 72 percent of
referrals or leads. The agents firm or franchises website or social media was the primary
source of online leads, followed by other aggregator websites, and Realtor.com.
Respondents were evenly split about the outlook in the next 12 months: 43 percent
expected the same or an increase in international clients, 42 percent expected a decrease,
and 15 percent had no opinion (dont know).
Slightly more than half56 percentexpected foreign retirees to be potential clients.

4
I. MACROECONOMIC ENVIRONMENT

Macroeconomic and political conditions created both opportunities and challenges for
foreign buyers. Amid the collapse in oil prices, the Latin America and the Caribbean area
emerged out of a recession in 2016, but overall growth has been weak. Meanwhile, growth in
Canada and the euro area firmed up, supported by expansionary monetary and fiscal policy. In
the United Kingdom, economic growth eased, yet only modestly, as consumer spending held
strong in the wake of the June 2016 referendum outcome for the United Kingdom to leave the
European Union (Brexit). Economic growth eased in China as the economy continued to
undergo a transformation from an investment-led to a consumption-led economy. The Chinese
government also tightened capital outflow regulations to stem capital outflows and the
depreciation of the yuan.

Economic Growth Rates

9.0
7.0
5.0
3.0
1.0
-1.0
-3.0
-5.0
Canada Euro Area United Latin Brazil Mexico China
Kingdom America and
the
Caribbean
2014 2015 2016 2017F
Source: IMF, World Economic Outlook July 2017 Update

Spot Oil Price (West Texas Intermediate) in

Dollars per Barrel
120

100

80

60 48
40

20

0
Jul/2015

Jul/2016
Jul/2013

Jul/2014

Jul/2017
May/2013

Nov/2013

May/2014

Nov/2014

May/2015

Nov/2015

May/2016

Nov/2016

May/2017
Jan/2013
Mar/2013

Sep/2013

Jan/2014
Mar/2014

Sep/2014

Jan/2015
Mar/2015

Sep/2015

Jan/2016
Mar/2016

Sep/2016

Jan/2017
Mar/2017

5
 The dollar strengthened against the Venezuelan bolivar, the British pound, the new
Mexican peso, and the Chinese yuan. It also slightly strengthened against the euro. Low oil prices
and the ensuing economic and political turmoil in Venezuela caused the dollar to appreciate
against the Venezuelan bolivar and the new Mexican peso, and it strengthened against the
British pound in the wake of Brexit. The stronger dollar made U.S. property purchases less
affordable for citizens earning in these currencies. The Canadian dollar, on the other hand,
actually stabilized against the U.S. dollar after weakening in 2013 through the middle of 2016.

Average Monthly Change of the Value of the

U.S.Dollar Against Local Currencies from August
35% 2016July 2017
15%
10%
5%
2%

0% -1%
-13%

With tight supply, U.S. home prices rose by four percent, adjusted for inflation, in the
second quarter of 2017. The pace of growth was modest compared with Canada, where home
prices rose by 11 percent, adjusted for inflation. However, U.S. home prices rose at a faster pace
than other countries such as Mexico, the United Kingdom, and several European countries.

Real House Price Growth in 2017Q1

20.0
15.0
10.0
5.0
0.0
-5.0
-10.0
-15.0
-20.0

Source: IMF Housing Watch

6
II. SIZE OF INTERNATIONAL TRANSACTIONS

In the 12-month period ending in July 2017, foreign buyers purchased $24.2 billion of
Florida residential real estate ($19.4 billion in 2016).1 The dollar volume of foreign buyer
purchases accounted for 21 percent of Floridas existing home sales (19 percent in 2016), higher
than the 10 percent share of all U.S. foreign buyers.

Dollar Volume of International Sales in Billion

Dollars
$23.7 $24.2

$19.4
$17.1 $17.3 $17.4
$15.2 $15.7
$14.5

2009 2010 2011 2012 2013 2014 2015 2016 2017

Foreign buyers purchased 61,300 residential properties in Florida during 2017 (47,000 in
2016). The number of foreign buyer purchases accounted for 15 percent of Floridas existing
home sales (12 percent in 2016), higher than the five percent share of all U.S. foreign buyers.2

1
The 2017 Florida REALTORS survey covered the period August 2016July 2017. In past Florida REALTORS
surveys, the 12-month period generally covered July of the previous year to June of the current year. No survey was
held in 2006. The 2005, 2007, and 2008 surveys covered only non-resident foreign buyers (Type A). Starting in 2010,
the estimates were benchmarked to the national survey. Starting in 2015, the purchase price was top-coded at $5
million from $1.3 million in previous surveys. From 20052015, estimates included some purchases for commercial
properties. See Appendix 1 for the calculations and Appendix 2 for notes on the survey and estimation methods.
2
Source: NARs 2017 Profile of International Activity in the U.S. Residential Real Estate. The reference period in
estimating the national level of foreign buyer purchases of residential property is April 2016March 2017.

7
 Number of International Sales in Thousand Units
66.1 65.3
61.3
53.6 52.3
46.0 47.0
44.3 44.0

2009 2010 2011 2012 2013 2014 2015 2016 2017

International Sales as a Share of Dollar Volume

and Number of Existing Home Sales

57%
52%
51%
43%

27% 28%
23% 24%
21% 19% 19%
17% 21%
14% 15% 12% 12% 15%

2009 2010 2011 2012 2013 2014 2015 2016 2017

As Percent of Florida's Home Sales As Percent of Dollar Volume

Most foreign buyers70 percentwere buyers who primarily resided abroad (Type A),
about the same as in 2016 (69 percent in 2016). Nationally, only 48 percent of all U.S. foreign
buyers were non-resident buyers.

8
 Non-resident (Type A) Buyer as a Percent of
Florida's Foreign Buyers
69% 70%

31% 30%

Non-resident (Type A) Resident (Type B)

2016 2017

III. FOREIGN BUYERS: ORIGINS AND PREFERENCES

Origin of Foreign Buyers

Floridas foreign buyers came from many countries.

Buyers from Latin America and the Caribbean accounted for the largest fraction at 34
percent, although they comprised a smaller share than in 2016 (39 percent) as the share of
purchases from Argentina, Brazil, Colombia, Mexico, and Venezuela decreased compared to a
year ago. Weaker economic conditions in the region and the stronger value of the dollar likely
accounted for the lower share of Latin American and Caribbean purchases in 2017.

On the other hand, the share of buyers from North America, all of which came from
Canada, increased to 22 percent (19 percent in 2016). Stability in the value of the Canadian
dollar compared to the U.S. dollar in 20162017 after weakening in 20142015 and the modest
price appreciation in the United States compared to Canada made a U.S. home purchase more
affordable for Canadians. The equity gained from the strong price growth in Canadas home
prices may also have provided a source of cash for homeowners who sold their Canadian
property.

The share of buyers from Europe was unchanged at 23 percent. Although the British
pound depreciated against the dollar, the share of U.K. purchases was unchanged at six percent,
as economic growth was sustained by supportive monetary policies. Concerns about the
uncertain outcome of the Brexit decision on the British economy and on the value of the pound
relative to the dollar may also have boosted U.S. property purchases. Meanwhile, there was an
increase in the share of buyers from Germany and France.

9
 Buyers from Asia and Oceania accounted for ten percent (10 percent in 2016). The
fraction of Asian buyers has been trending up. However, the share of Chinese buyers declined to
three percent in 2017 (nearly four percent in 2016), perhaps in part due to tighter regulations on
the outflow of foreign capital which the Chinese government undertook in 2016 to stem the
outflow of capital and the depreciation of the yuan.

African buyers were one percent of foreign buyers (one percent in 2016).

The top five buyers were Canada (22 percent), Brazil (seven percent), the United
Kingdom (six percent), Venezuela (six percent), and Argentina (five percent).

Florida's Major Foreign Buyers

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
United
Canada Brazil Venezuela Argentina Colombia Germany France China Mexico
Kingdom
2008 26.6% 2.4% 21.2% 4.7% 1.7% 1.7% 6.7% 4.2% 0.5% 2.4%
2009 25.9% 1.9% 15.1% 5.4% 4.6% 1.6% 6.8% 4.6% 0.5% 2.4%
2010 35.1% 3.0% 15.1% 4.1% 1.5% 1.7% 5.0% 2.8% 1.9% 1.1%
2011 39.1% 7.8% 7.0% 6.8% 3.3% 2.6% 4.6% 4.1% 0.8% 1.7%
2012 30.7% 9.3% 4.6% 7.5% 5.2% 3.9% 3.7% 4.5% 2.2% 1.3%
2013 29.6% 6.5% 5.8% 7.6% 5.5% 3.2% 5.3% 3.2% 3.9% 0.5%
2014 31.6% 5.7% 7.0% 3.4% 2.9% 3.5% 5.4% 3.2% 5.7% 2.0%
2015 11.1% 9.4% 5.1% 18.4% 6.7% 7.0% 2.3% 2.6% 3.8% 2.3%
2016 18.9% 8.7% 6.2% 7.8% 6.0% 5.2% 3.3% 2.3% 3.5% 2.0%
2017 22.0% 6.6% 6.2% 6.1% 4.6% 4.5% 3.7% 3.4% 3.1% 2.1%

10
 Origin of Florida's Foreign Buyers
5% 8% 10%
26% 11%
27% 31% 30% 32%
35% 38% 19%
22%

17%
25%
17% 32% 23% 56%
36% 39% 34%
28%

50% 42% 37% 29%

27% 23% 23%
28% 24% 19%
11%
3% 5% 6% 6% 8% 8% 10% 10%
3% 3% 4% 4% 3% 4% 5%
2% 2% 1% 1%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa Asia and Oceania

Europe Latin America and the Caribbean
North America Unknown

Most buyers from Argentina, Brazil, Canada, the United Kingdom, and Venezuela
primarily resided abroad (non-resident or Type A). The share of Type A buyers declined among
the Latin American buyers and the United Kingdom, given the depreciation of their currencies
against the dollar. On the other hand, the share of Type A Canadian buyers held steady as the
Canadian dollar stabilized against the U.S. dollar.

Share of Non-resident (Type A) Buyers

90% 90%
82% 79% 76%
76%
66% 69%
61% 63%

Argentina Brazil Canada United Kingdom Venezuela

2016 2017

11
Destination of Foreign Buyers

Foreign buyers purchased property across Florida, but foreign buyers were concentrated
in Miami-Fort Lauderdale-West Palm Beach MSA (53 percent), Orlando-Kissimmee-Sanford MSA
(11 percent), Tampa-St. Petersburg-Clearwater MSA (nine percent), Cape Coral-Fort Myers (six
percent), and North Point-Sarasota-Bradenton (five percent).

Destination of Florida's Foreign Buyers

Miami-Fort Lauderdale-West Palm Beach MSA 52.6%
52.1%
Orlando-Kissimmee-Sanford MSA 10.8%
11.5%
Tampa-St.Petersburg-Clearwater MSA 8.5%
7.7%
Cape Coral-Fort Myers MSA 5.7%
3.5%
North Port-Sarasota-Bradenton MSA 4.7%
3.2%
Jacksonville MSA 2.6%
2.5%
Naples-Immokalee-Marco Island MSA 2.5%
3.0%
Lakeland-Winter Haven MSA 2.0%
0.6%
Port St. Lucie MSA 1.8%
2.5%
Deltona-Daytona Beach-Ormond Beach MSA 1.6%
1.4%
Palm Bay-Melbourne-Titusville MSA 1.5%
1.2%
Punta Gorda MSA 1.0%
0.6%
Crestview-Fort Walton Beach-Destin MSA 0.9%
0.5%
Sebastian-Vero Beach MSA 0.6%
0.8%
Ocala MSA 0.6%
0.5%
Panama City MSA 0.6%
0.3%
Gainesville MSA 0.4%
0.4%
Homosassa Springs MSA 0.3%
0.2%
Tallahassee MSA 0.2%
0.4%
The Villages MSA 0.1%
0.1%
Pensacola-Ferry Pass-Brent MSA 0.3%
Sebring MSA 0.1%
Other FL County 1.0%
6.6%
2017 2016

12
 Another way of looking at the preferred destination of foreign buyers is to compare the
percentage distribution of Floridas sales of single-family homes, townhomes, and condominiums
across metropolitan statistical areas to the percentage distribution of foreign buyers in these
metropolitan areas3. This comparison shows that Miami-Fort Lauderdale-West Palm Beach MSA
accounted for 24 percent of closed sales, but it accounted for 53 percent of foreign buyers.

Distribution of Foreign Buyer Purchases Compared to

Distribution of Florida's Closed Sales
Miami-Fort Lauderdale-West Palm Beach MSA 52.6%
23.6%
Orlando-Kissimmee-Sanford MSA 10.8%
11.2%
Tampa-St.Petersburg-Clearwater MSA 8.5%
17.0%
Cape Coral-Fort Myers MSA 5.7%
4.9%
North Port-Sarasota-Bradenton MSA 4.7%
5.3%
Jacksonville MSA 2.6%
7.2%
Naples-Immokalee-Marco Island MSA 2.5%
2.6%
Lakeland-Winter Haven MSA 2.0%
2.8%
Port St. Lucie MSA 1.8%
2.7%
Deltona-Daytona Beach-Ormond Beach MSA 1.6%
3.8%
Palm Bay-Melbourne-Titusville MSA 1.5%
3.2%
Punta Gorda MSA 1.0%
1.5%
Crestview-Fort Walton Beach-Destin MSA 0.9%
2.2%
Sebastian-Vero Beach MSA 0.6%
1.0%
Ocala MSA 0.6%
1.7%
Panama City MSA 0.6%
1.3%
Gainesville MSA 0.4%
1.0%
Homosassa Springs MSA 0.3%
0.8%
Tallahassee MSA 0.2%
1.3%
The Villages MSA 0.1%
0.3%
Pensacola-Ferry Pass-Brent MSA 2.4%
Sebring MSA 0.5%

Percent Distrbution of Foreign Buyer Residential Purchases

Percent Distribution of Florida's Closed Sales (SF/TH/Condo)

3
Source: Florida REALTORS. Floridas closed sales are those reported on the Multiple Listing Services (MLSs) and
do not include for-sale-by-owners (FSBOs). However, the number of Floridas foreign buyers, which are
benchmarked to total U.S. foreign buyers and existing home sales, counts FSBOs.

13
Major Buyers of Top Florida Destinations

Foreign buyers tended to concentrate in an area for several reasons, such as geographic
proximity, cultural similarities, investment opportunities, and the presence of family or friends.

Origin of Foreign Buyers in Florida's Metro Areas

Miami-Fort Lauderdale-West Palm Beach MSA 18% 46% 9% 19% 1%7%

Orlando-Kissimmee-Sanford MSA 22% 37% 15% 12% 1% 13%

Tampa-St.Petersburg-Clearwater MSA 23% 17% 17% 32% 1% 10%

Cape Coral-Fort Myers MSA 40% 7% 42% 1% 9%

North Port-Sarasota-Bradenton MSA 37% 7% 10% 36% 10%

Jacksonville MSA 21% 26% 30% 9% 14%

Naples-Immokalee-Marco Island MSA 35% 3% 51% 3% 8%

Lakeland-Winter Haven MSA 48% 15% 12% 18% 3%3%

Deltona-Daytona Beach-Ormond Beach MSA 20% 30% 10% 23% 17%

Other areas 28% 20% 6% 23% 3% 20%

Europe Latin America and the Caribbean Asia and Oceania North America (Canada) Africa Unknown

Miami-Fort Lauderdale-West Palm Beach MSA buyers were predominantly Latin

American and Caribbean (46 percent), as well as Canadian (19 percent) and European (18
percent).

Orlando- Kissimmee-Sanford MSA buyers were mainly Latin American and Caribbean (37
percent), European (22 percent), and Asian (15 percent).

Tampa-St. Petersburg-Clearwater MSA had a more even mix of buyers from Canada (32
percent), Europe (23 percent), Latin America and the Caribbean (17 percent), and Asia (17
percent).

Cape Coral-Fort Myers MSA buyers attracted mostly Canadians (42 percent) and
Europeans (40 percent).

North Point-Sarasota-Bradenton MSA buyers also attracted mostly Europeans (37

percent) and Canadians (36 percent).

Jacksonville MSA buyers were predominantly from Asia (30 percent) and Latin American
and the Caribbean (26 percent).

14
 Naples-Immokalee-Marco Island MSA buyers were mostly from Canada (51 percent) and
Europe (35 percent).

Lakeland-Winter Haven MSA buyers were predominantly from Europe (48 percent).

Deltona-Daytona Beach-Ormond Beach attracted an even mix of buyers from Europe (20
percent), Canada (30 percent), Asia (10 percent), Canada (23 percent), and other buyers whose
origins were reported as Unknown by the respondent (17 percent).

Other counties in Florida also attracted a mix of buyers from Europe (28 percent), Canada
(23 percent), Latin America and the Caribbean (20 percent), Asia (six percent), Africa (three
percent) and other buyers whose origins were reported as Unknown by the respondent (20
percent).

The next charts show the countries of origin for some metropolitan areas.4

Major Foreign Buyers in Miami-Fort Lauderdale-

West Palm Beach MSA
Canada 19%
Brazil 9%
Argentina 8%
Venezuela 8%
Colombia 7%
France 4%
United Kingdom 3%
China 3%
Mexico 2%
Ecuador 2%
Turkey 2%
Germany 2%
Israel 2%
Peru 2%
Russia 2%
Other 27%

4
These selected metropolitan statistical areas had a sample size of at least 30 observations.

15
 Major Foreign Buyers in Orlando-Kissimmee-
Sanford MSA
Brazil 13%
Canada 12%
United Kingdom 10%
Venezuela 10%
China 7%
Colombia 4%
Italy 3%
Haiti 2%
Mexico 2%
Argentina 2%
Germany 2%
India 2%
Israel 2%
Peru 2%
United Arab Emirates 2%
Other 28%

Major Foreign Buyers in Tampa-St. Petersburg-

Clearwater MSA
Canada 32%
United Kingdom 9%
Venezuela 6%
India 6%
Germany 4%
Russia 3%
France 2%
Turkey 2%
Other 36%

Major Foreign Buyers in Cape Coral-Fort Myers

MSA
Canada 42%
Germany 20%
United Kingdom 10%
Norway 3%
Brazil 2%
France 2%
Spain 2%
Other 18%

16
 Major Foreign Buyers in Naples-Immokalee-
Marco Island MSA
Canada 51%

Germany 14%

France 8%

United Kingdom 5%

Other 22%

Major Foreign Buyers in Jacksonville MSA

Canada 9%
China 9%
Brazil 7%
United Kingdom 7%
Argentina 5%
Germany 5%
Iraq 5%
Other 53%

Major Foreign Buyers in Naples-Immokalee-

Marco Island MSA
Canada 51%

Germany 14%

France 8%

United Kingdom 5%

Other 22%

17
 Major Foreign Buyers in Lakeland-Winter Haven
MSA
United Kingdom 36%

Canada 18%

Ireland 6%

Other 39%

Major Foreign Buyers in Deltona-Daytona Beach-

Ormond Beach MSA
Canada 23%

Argentina 7%

Dominican Republic 7%

United Kingdom 7%

Other 57%

Major Destinations of Floridas Major Buyers

The next charts show the destination of the top five buyers: Argentina, Brazil, Canada,
the United Kingdom, and Venezuela. Miami-Fort Lauderdale-West Palm Beach, Orlando-
Kissimmee-Sanford, and Tampa-St. Petersburg-Clearwater were the top destinations among the
major foreign buyers.

18
 Florida Destinations of Argentinian Residential
Buyers
Miami-Fort Lauderdale-West Palm Beach 89%

Orlando-Kissimmee-Sanford 4%

Jacksonville 3%

Deltona-Daytona Beach-Ormond Beach 2%

Palm Bay-Melbourne-Titusville 1%

Tampa-St.Petersburg-Clearwater 1%

Florida Destinations of Brazilian Residential

Buyers
Miami-Fort Lauderdale-West Palm Beach 68%
Orlando-Kissimmee-Sanford 21%
Jacksonville 3%
Cape Coral-Fort Myers 2%
Tampa-St.Petersburg-Clearwater 2%
Sebastian-Vero Beach 2%
Crestview-Fort Walton 1%
Port St. Lucie 1%
Lakeland-Winter Haven 1%
Deltona-Daytona Beach-Ormond 1%

Florida Destinations of Canadian Residential

Buyers
Miami-Fort Lauderdale-West Palm Beach 45%
Tampa-St.Petersburg-Clearwater 12%
Cape Coral-Fort Myers 11%
North Port-Sarasota-Bradenton 8%
Naples-Immokalee-Marco 6%
Orlando-Kissimmee-Sanford 6%
Port St. Lucie 3%
Punta Gorda 2%
Deltona-Daytona Beach-Ormond 2%
Lakeland-Winter Haven 2%
Jacksonville 1%
Sebastian-Vero Beach 1%
Other 2%

19
 Florida Destinations of U.K. Residential Buyers
Miami-Fort Lauderdale-West Palm Beach 23%
Orlando-Kissimmee-Sanford 18%
Tampa-St.Petersburg-Clearwater 12%
Lakeland-Winter Haven 12%
Cape Coral-Fort Myers 9%
North Port-Sarasota-Bradenton 8%
Punta Gorda 3%
Palm Bay-Melbourne-Titusville 3%
Jacksonville 3%
Naples-Immokalee-Marco 2%
Ocala 2%
Deltona-Daytona Beach-Ormond 2%
Port St. Lucie 1%
Other 1%

Florida Destinations of Venezuelan Residential

Buyers
Miami-Fort Lauderdale-West Palm Beach 68%
Orlando-Kissimmee-Sanford 17%
Tampa-St.Petersburg-Clearwater 9%
Cape Coral-Fort Myers 1%
Gainesville 1%
Port St. Lucie 1%
North Port-Sarasota-Bradenton 1%
Lakeland-Winter Haven 1%

Prices and Financing

The median purchase price among foreign buyers increased to $259,400 ($252,500 in
2016). The foreign buyer median price was 18 percent higher than the median price of Floridas
existing home sales of $220,100.

Eighty-one percent of foreign buyers purchased properties of $500,000 or less, slightly

lower than in 2016 (79 percent).

Among the major buyers, buyers from Brazil and Argentina typically purchased more
expensive properties compared to other buyers. Amid the depreciation of the Venezuelan
bolivar and British pound, buyers from Venezuela and the United Kingdom purchased less
expensive properties compared to one year ago.

20
 Median Purchase Prices Among Florida's Foreign
and All Residential Buyers in Thousands Dollars
$400

$300 $259.4
$220.1
$200

$100

$0
2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Foreign Buyers All Buyers

Price Distribution
34%
29%
28%
25% 23%
22%

9% 8%
7% 6%
4% 4%
1% 1%

Up to $150,001 to $250,001 to $500,001 to $750 to $1M $1M to $3M Over $3M

$150,000 $250,000 $500,000 $750

2016 2017

Median Purchase Prices in Thousand Dollars

$390.3
$392.3
$314.4 $305.1
$267.5 $273.6 $275.7 $259.4
$252.5
$220.4 $232.5 $219.1

Argentina Brazil Canada United Venezuela All foreign

Kingdom buyers
2016 2017

21
 Seventy-two percent of foreign buyers made an all-cash purchase, the same share as in
the past year (72 percent in 2016). The majority of Floridas foreign buyers were non-resident
buyers (Type A), and these buyers tend to make an all-cash purchase compared to resident
foreign buyers (Type B).

Financing Among Foreign Buyers

72% 72%

23% 21%

2% 2% 2% 2% 1% 2%

All Cash Mortgage Mortgage Investors/Other Dont Know

Financing - U.S. Financing -
Sources Buyer's Home
Country

2016 2017

Among the major foreign buyers, Argentinian buyers were the most likely to make an all-
cash purchase.

Type of Financing Among Florida's Major Foreign

Buyers
14% 9% 20% 23%
30%

85% 86%
77% 72%
67%

Argentina Brazil Canada United Kingdom Venezuela

All Cash Mortgage Loan from U.S. Sources

Mortgage Loan from Home Country Other/Don't Know

22
Intended Use of Property

Most foreign buyers68 percentpurchased residential property for vacation,

residential rental, or for both uses, although the fraction decreased compared to the share in
2016 (72 percent in 2016).

Compared with overall U.S. foreign buyers, Floridas foreign buyers were more likely to
purchase property for vacation, residential rental, or both uses (39 percent).

Intended Use of Residential Property

30%
28% 27%26%
23%
20%
15%15%

3% 4% 3% 3%
1% 1%

Vacation Residential Both of the Primary Property for Other Don't know
home for rental above residence use by
family and property for student(s)
friends investment studying in
U.S.
educational
institutions

2016 2017

Buyers from Canada and the United Kingdom were more likely to purchase a vacation
property. Buyers from Argentina and Venezuela tended to purchase a property for residential
investment. Buyers from Brazil had a more even mixed use of the purchased properties for
vacation, residential rental, or primary residence.

23
 Intended Use of Florida Property Purchased by Major
Foreign Buyers
4% 2% 1%
9%
6% 9%
16% 17% 4%
14%
13% 30% 28%
19%
18%

15% 17% 16%

43%

16%
55%
44% 39%

24% 27%

3%
Argentina Brazil Canada United Kingdom Venezuela

Vacation Home Residential Investment

Both Vacation and Residential Investment Primary Residence
Property for Use by Student Other
Dont Know

Type of Property

Nearly half (49 percent) of foreign buyers bought a townhouse or condominium, a slight
decrease from the share in 2016 (52 percent). Nationally, only 29 percent of foreign buyers
purchased these types of properties.

Type of Residential Property

46%
44%
39% 38%

13% 11%

2% 1% 3% 2%

Detached Single- Townhouse Condominium Residential Land Other

Family

2016 2017

24
 Buyers from Brazil and the United Kingdom tended to purchase single-family homes.
Buyers from Argentina, Canada, and Venezuela, who tended to purchase properties for vacation
and/or residential investment were most likely to purchase condominiums and townhomes.

Residential Property Purchases of Florida's Major

Foreign Buyers
2% 3% 4%
26%
27%
52% 49%
66%
12%

9% 13%
8% 59% 56%
37% 35%
26%

Argentina Brazil Canada United Venezuela

Kingdom

Detached single-family Townhouse/row house/duplex

Condominium or Cooperative Other (please specify)

Location Preference

Fewer foreign buyers purchased in a central city/urban area, with the share at 35 percent
(40 percent in 2016). Meanwhile, 15 percent purchased in a resort area, a decline from the 33
percent share in 2008; this is consistent with the declining share of Canadian and U.K. buyers,
from 50 percent in 2008 to less than 30 percent in 2017.

Location Preference of Florida's Foreign Buyers

19% 14% 15%

31% 30% 25% 27% 25%
33% 32% 10%
4% 11%
6% 8% 10%
8% 7% 5%
9% 30%
36% 37%
30%
27% 35%
32% 37% 39%
33%

47%
35% 39% 40% 35%
25% 29% 26% 30% 26%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Central city/urban area Suburban area Small town/rural area Resort area

25
 Buyers from Argentina and Venezuela, who purchased properties for residential rental,
purchased properties in central city/urban areas. Most buyers from the United Kingdom
purchased properties in suburban and resort areas. Canadian buyers were more evenly spread
out across central city/urban and suburban areas. Among the major buyers, Canadian and U.K.
buyers were the most likely to purchase properties in resort areas.

Location Preference Among Florida's Major

Foreign Buyers
9% 3%
1% 5% 28% 30%
31%
30%
36% 12% 11%

35% 41%
59% 63%
50%
25% 18%

Argentina Brazil Canada United Kingdom Venezuela

Central City/Urban Area Suburban Area Small Town/ Rural Area Resort Area

Factors Affecting Decision to Purchase Property in Florida

Ninety percent of respondents reported that the exchange rate had a moderate to
significant effect on potential buyers.

Impact of Exchange Rate on Potential Buyers

10% 9% 10%

38% 33%
37%

52% 58% 52%

2015 2016 2017

Significant Moderate Not Much

26
 The major reasons respondents cited why their clients did not purchase property were
Could not find a property, price-related reasons (e.g., exchange rate, condominium fees,
obtaining financing, moving/transferring money), and immigration laws.

Reasons Client Did Not Purchase Property

Could not find a property to purchase 14%
Exchange rate 12%
Condo/maintenance fees 10%
Could not obtain financing 8%
Immigration laws 7%
Can not move money 7%
Property taxes 5%
Exposure to U.S. tax laws 5%
Insurance costs 4%
Loss of home country benefits 1%
Don't know/Other 12%

2017

Similarly to U.S. buyers, foreign buyers consider a residential property acquisition as a

significant investment. Consequently, most buyers93 percentvisited Florida before making a
purchase (92 percent in 2016).

Number of Times International Client Visited

Florida Before Purchasing a Property
29%
26%
21% 21%
19%
17%

10% 10%
8% 7% 8%
6% 5% 6%
4% 3%

0 1 2 3 4 5 to 7 8 to 10 More than
10

2016 2017

27
IV. FLORIDA RESIDENTS SEEKING TO PURCHASE PROPERTY ABROAD

Among 2017 respondents, 17 percent reported that they had a client who was seeking to
purchase property in another country (14 percent in 2016). Eleven percent reported they helped
the client directly or referred the client to a business contact in the United States or their foreign
contact.

Referrals of U.S. Residents Interested in Purchasing

Property Abroad
86% 83%

4% 6% 5% 5% 3% 3% 2% 3%

No client who was Could not refer the Referral to a Helped the client Referral to a
interested in finding client to anyone business contact in search directly business contact in
property outside another country the U.S. who works
the U.S. with international
clients

2016 2017

Latin America, Europe, and Canada tend to be favored among searchers. Among
REALTORS who had clients interested in purchasing property abroad in 20162017, Colombia,
Costa Rica, Spain, Canada, and the Dominican Republic were the top countries of interest.

Countries of Interest to U.S. Residents Seeking to

Purchase Property in 20162017
9%
8%
6%
4% 4% 4% 4% 4% 4% 3% 3% 3% 2% 2%

28
 Most clients were interested in residential property, primarily for use as vacation home
or residential rental. Detached single-family homes were the most preferred.

Type of Property U.S. Residents Were Interested

in Purchasing Abroad

79% 75%

14% 17%
7% 8%

Residential Property Commercial Property Don't Know

2016 2017

Intended Use of Property Among U.S. Residents

Seeking Property Abroad
37%
30% 28% 30%

19%
15% 13% 14%
7%
1% 3% 2%

Vacation Home Both Vacation Residential Primary Other Don't Know

for Home and Rental Residence
Family/Friends Residential
Rental

2016 2017

29
 Type of Property of Interest to U.S. Residents
Seeking Property Abroad
44% 46%

35% 33%

11%
8%
5% 6% 3% 5%
2% 2%

Detached Condominium Townhouse Residential Other Don't Know

Single-Family Land

2016 2017

V. REALTOR INTERACTION WITH INTERNATIONAL CLIENTS

Source of Referrals or Leads

A larger share of Florida REALTORS reported working with international clients than the
overall U.S. REALTORS. In 2017, 44 percent of respondents worked with an international client
(48 percent in 2016). In comparison, nationally, only 29 percent of REALTORS worked with an
international client.

Share of Florida REALTOR Respondents Who

Had International Clients In Past 12 Months
77%
69%
61% 61% 63%
53% 54% 52%
48%
44%
35%
28% 28% 27% 28% 31% 29%
26% 27%
23%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Florida Survey U.S. Survey

30
 Personal contacts, previous clients, and business contacts accounted for 72 percent of
referrals or leads. The firms or franchises website or social media was the primary source of
online leads, followed by other aggregator websites, and Realtor.com.

Source of Referrals or Leads on Florida's Foreign Buyers

Personal Contacts 31%
Referred by Previous Client 23%
Was a Former Client 12%
Website/Internet Organic Search 9%
Website/Internet (Paid Ad) 5%
Walk-in/Open House/Phone Call 4%
From a Business contact in the U.S. 4%
Sings/Ads on Boards or Yard 2%
From a Business Contact Outside the U.S. 2%
Other 8%

Source of Online Leads on Florida's Residential Foreign Buyers

Own/Firm/Franchise's Website or Social Media 41%

Other Aggregators' Websites 26%

Realtor.com 18%

Local MLS 3%

Other Online Search 1%

Home country real estate internet portal 0%

Commercial Listing 0%

Other Sources 4%

Dont Know 6%

Language and Cultural Factors

Among all respondents, 61 percent reported they did not have cultural or language
problems in their interactions (65 percent in 2016). Although 72 percent of the respondents
reported they were born in the United States, slightly more than a third spoke a language other
than English.

31
 Cultural or Language Problems
65%
61%

35%
32%

3% 4%

Have Not Had Problems A Few Problems Significant Problems

2016 2017

Born in the United States

19% 11% 21% 19%
27% 21% 6%
8% 37% 9%
10% 9%
10%
14%
73% 83%
63% 69% 70% 72%
48%

2011 2012 2013 2014 2015 2016 2017

No, but came to the U.S. at least 18 years old

No, but came to the U.S. before 18 years old
Yes

Percent of Florida REALTOR Respondents Who

are Fluent in a Language Other than English
41%
39% 39%
36% 37%
33% 33% 33%
30%
24%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

32
 Eighteen percent of respondents reported less than one year of experience as a
REALTOR. Eleven percent reported they had a Certified International Property Specialist (CIPS)
designation.

Number of Years as a REALTOR

35% 31%
30%
25%
20% 18% 17%
15%
15% 11%
8%
10%
5%
0%
Less than 1 1 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years 21 years or
year more

2015 2016 2017

Designations Held By Respondents

42.5%
35.6%

16.9%
14.7% 13.5% 13.1%
10.8%
7.5% 7.4% 7.1%
3.1% 2.7% 2.2%
0.1%

Outlook in the Next 12 Months

Respondents were evenly split about the outlook in the next 12 months: 43 percent
expected the same or an increase in international clients, 42 percent expected a decrease, and
15 percent had no opinion (dont know). Respondents cited several reasons for their cautious
outlook, including rising/unaffordable home prices, unfriendly political climate and immigration
policies, and the strong dollar, especially against the Canadian dollar and the British pound.

Slightly more than half56 percentexpected foreign retirees to be potential clients in

the near term.

33
 Outlook in Next 12 Months
42% 42%

27% 29%

17%
14% 14% 15%

Increase Remain the Same Decrease Don't Know

2016 2017

Are Foreign Retirees A Potential Pool of Buyers

In Your Market?

28% 27% 21% 27% 28% 21% 21%

32% 30% 30%

21% 25% 22% 25% 23%

22% 23% 23% 23% 24%

49% 52% 54% 47% 52% 47% 48% 54% 56%

46%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Yes No Dont Know

VI. CONCLUDING COMMENTS

Notwithstanding the appreciation of the dollar and difficult economic environment in

countries where most Floridas foreign buyers come from, Florida REALTORS international
transactions increased as the share of buyers from Canada rose while the share of buyers from
Latin America and Europe decreased.

The future growth of international business will be strongly dependent on global

economic conditions and the real estate conditions in Florida, mainly prices and availability of
supply. Floridas natural endowmentsits warm climate, abundant seashore, natural beauty,
and proximity to Latin America, are expected to keep Florida as a top destination for foreign
buyers. The increasing entry of new agents is reflective of their positive expectations of Floridas
residential market. However, this also indicates the need to assist Florida REALTORS members
in cultivating and growing their business.

34
APPENDIX 1. COMPUTATION OF DOLLAR VOLUME OF FOREIGN BUYER PURCHASES

Appendix 1
Computation of Residential Purchases of Foreign Buyers in Florida for the 12-Month Period August 2016July 2017

Line Florida's Foreign Buyer Residential Purchases

1 Total U.S. Foreign Buyer Residential Purchases 284,455
2 Florida's Share to U.S. Foreign Buyer Residential Purchases (units) 22%
3 Number of Florida Foreign Buyer Residential Purchases 61,300
4 Average Price of Florida Foreign Buyer Residential Purchases $394,035
5 Dollar Volume of Foreign Buyer Residential Purchases in Florida $24,154,332,014

Florida's Residential Market for Existing Homes

6 Florida's Residential Dollar Volume (Single-Family, Condo/Townhomes) $114,797,521,380
7 Florida's Closed Sales (Single-Family, Condo/Townhomes) 398,953

8 Share of Dollar Volume of Foreign Buyer Purchases to Florida's Dollar Volume of Closed Sales 15%
9 Share of Foreign Buyer Purchases to Florida's Closed Sales 21%
Notes:
Line 1 Source: NAR's 2017 Profile of International Activity in U.S. Residential Real Estate
Line 2 Source: NAR's 2017 Profile of International Activity in U.S. Residential Real Estate
Line 3 Mutiply Lines 1 and 2
Line 4 2017 Profile of International Residential Activity in Florida
Line 5 Mutiply Lines 3 and 4 (Sales = # of units x mean price)
Line 6 Dollar volume of closed sales for single-family homes, condominiums, and townhomes. Source of data: Florida Realtors
Line 7 Closed sales for single-family homes, condominiums, and townhomes. Source of data: Florida Realtors
Line 8 Divide Line 5 by Line 6.
Line 9 Divide Line 3 by Line 7.

35
APPENDIX 2. NOTES ON SURVEY AND ESTIMATION METHOD

Several factors need to be considered when comparing the annual results due to changes in data
collection and the estimation of sales volume from international (foreign) clients:

The 2005, 2007, 2008 surveys covered only Type A international clients, those who
primarily resided abroad and who were purchasing U.S. property for vacation or
investment purposes. From 2009 onwards, the survey asked about clients who were
citizens of another country, a definition that includes Type A clients and non-U.S.
citizens such as immigrants and those residing in the United States on work or student
visas (Type B). No survey was held in 2006.
The 2005, 2007, 2008, 2009 estimates of Floridas international sales (units, dollar
volume, and share to Floridas closed sales) were estimated using Florida survey data.
From 2010 onwards, when NAR started to generate the estimate of international sales in
the United States (national estimate), the number of international sales (in units) in
Florida were estimated based on Floridas share of the national estimate. However, the
average price and the distribution of Floridas foreign buyers across metro areas were
taken from the Florida surveys.
During the 2005-2015 surveys, estimates of international sales included some
commercial purchases. Beginning in the 2016 survey, the estimates only included foreign
buyer purchases of residential property, yielding a better estimate that can be compared
to total existing home sales.
Beginning in the 2016 survey, the reference period covered the 12-month period of
August of the previous year to July of the current year. Previous surveys covered
transactions from July of the previous year to June of the current year. The impact of this
change is likely to be minimal because the seasonal difference between the JulyJune
period and the AugustJuly period is not likely significant.
Beginning in the 2015 survey, the responses were weighted to correct for over- or under-
response from a metro area. The weight factor wi is equal to the number of members in
area i divided by the number of respondents in area i. Data on Florida REALTORS
membership is provided by the association.
Beginning in the 2015 survey, the highest purchase price was capped at $5 million, from
$1.3 million in previous surveys. The mean or the average price is used to calculate the
total dollar volume of purchases. The mean can be used as a measure of central
tendency. It is found by summing the responses and dividing by the number of
responses. However, because home values tend to skew to the higher end, the median is
often a better reflection of typical market activity. The median is the middle value of the
distribution. Half of all purchases fall below this value and half are above this value.

36
The National Association of REALTORS, The Voice for Real Estate, is Americas largest
trade association, representing over 1.2 million members, including NARs institutes,
societies and councils, involved in all aspects of the real estate industry. NAR membership
includes brokers, salespeople, property managers, appraisers, counselors and others
engaged in both residential and commercial real estate. The term REALTOR is a registered
collective membership mark that identifies a real estate professional who is a member of the
National Association of REALTORS and subscribes to its strict Code of Ethics. Working for
America's property owners, the National Association provides a facility for professional
development, research and exchange of information among its members and to the public
and government for the purpose of preserving the free enterprise system and the right to
own real property.

NATIONAL ASSOCIATION OF REALTORS

RESEARCH GROUP

The Mission of the National Association of REALTORS Research Division is to collect and
disseminate timely, accurate and comprehensive real estate data and to conduct economic
analysis to inform and engage members, consumers, and policy makers and the media in a
professional and accessible manner.

To find out about other products from NARs Research Division, visit
https://www.nar.realtor/research-and-statistics.

NATIONAL ASSOCIATION OF REALTORS

RESEARCH GROUP
500 New Jersey Avenue, NW
Washington, DC 20001
202.383.1000

37