Foreign buyers are falling out of love with Florida.
New analysis by the National Association of Realtors, as reported by the Orlando Sentinel, finds that the number of international home sales have hit their lowest levels in six years, and the strengthening dollar appears to be the culprit.
“I think for Canadians and Europeans the exchange rate may be making it more difficult to buy in the U.S.,” said Lawrence Yun, chief economist for NAR. The association, in conjunction with Florida Realtors, surveyed real estate agents for a year-long period the ended in June.
The decrease in Florida’s residential sales to foreigners is in line with a similar drop across the country.
Exchange-rate pressures are particularly troubling for the Orlando market, which relies heavily on United Kingdom buyers who are packing Euros. About 28% of the international real-estate deals in Central Florida are driven by U.K. buyers. Brazil follows with 19% and Venezuela with 12%.
The publication spoke with one realtor who finds that he is now losing bargain hunting foreign buyers to Spain, where more “distress deals” are available.
Despite the shrinking pool of international buyers, the study found that foreigners who bought in Florida paid a median price of $297,300, which represents a 42% growth over the previous year.
Follow Mansion Global:Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: firstname.lastname@example.org