Cape Coral is a top destination for foreign property buyers

October 26, 2018 12:53 pm

Cape Coral is a top destination for foreign property buyers, new data reveals.

Cape Coral-Fort Myers is joint fourth in the list of South Florida destinations, the National Association of Realtors figures state.

It picked up around 5% of sales from August 2017 through July 2018, according to the Profile of International Residential Real Estate Activity.

Cape Coral is a top destination for foreign property buyers

Half of foreign sales in Cape Coral-Fort Myers go to recent immigrants in the United States and to Canadians. Almost one-third foreign sales are to Europeans, with 11% to Latin and Caribbean buyers and 3% to Asians.

Across the state, foreign sales have slowed down a little overall due to tight inventory with both foreign and domestic, had to compete for a relatively small number of homes for sale.

Foreign buyers purchased $22.9 billion of Florida’s existing detached single-family, townhomes and condominiums – a 5% annual fall from $24.2 billion.

A stronger U.S. dollar also made Florida homes more expensive for foreign buyers from countries, including Venezuela and Brazil.

South Florida remains the preferred location for international business. While foreign buyers purchased property across the state, most foreign buyers were concentrated in five metropolitan areas. This is why Cape Coral is a top destination for foreign property buyers

Average spend increased from $259,400 in 2017 to $286,500, a rise of around 10%. As a result, foreign buyers paid about 20% more that the median price of a Florida home.

More foreign buyers from Latin America

Most foreign buyers in Florida (36%) came from Latin American and Caribbean nations, followed by Canadians (22%), Europeans (19%) and Asians (11%).

In dollar value, foreign buyers made up 19% of the market, 2% less than in 2017. Foreign buyer sales fell more, by 15% to 52,000 sales from 61,300 a year earlier.

As a percentage of all sales, foreign buyers made up 13% in the latest report – 2% down on the previous year.

More than two-thirds (68%) of foreign buyers primarily reside in another country; the rest are recent immigrants (less than two years in the U.S.) or visa holders.

Most foreign buyers – 67% – made an all-cash purchase, down from 72% in 2017.

But more buyers 71% purchased residential property for vacation, residential rental or both than last year (68%).

Just over half of foreign buyers preferred townhouses or condominium (53%), while 43% purchased a detached single-family home, 3% purchased residential land and 3% other types of properties.

Nearly half of foreign buyers purchased in a suburban or small town/rural area.

Almost all buyers (93%) visited Florida at least once before purchasing a property.

One third (35%) of realtors said that their client found Florida’s home prices less expensive than the prices in their home country.