According to data from the National Association of Realtors®, foreign purchases of U.S. homes plummeted from April 2020 to March 2021. Compared to the previous year, sales were down by 27% to $54.4 billion. However, the U.S. recently lifted travel bans for 33 countries including some in the European Union, the United Kingdom, China, Canada, Mexico, Brazil and India. For many of these foreign home buyers, the lack of inventory and significantly higher home prices may prove to be sobering though.
Florida to lead the way
Not surprisingly, it is largely expected that Florida will lead the way with the return of international home buyers. Of course, markets such as New York and California will also see an increase in home buying activity. While this is good news for Florida real estate prices, it comes at a time of historically low inventories and sky high prices. With many domestic buyers on the sidelines due to being priced out or outbid on properties, this may prove to be yet another obstacle standing in the way of home ownership.
Although the travel restrictions being lifted will undoubtedly increase the competition for housing, it is quite possible that many of these international buyers may be turned off by the high prices and limited inventory. If you are a buyer in the South Florida market, it is recommended that you still remain vigilant with your real estate agent to immediately identify properties that come to the market. Needless to say, you will need to act swiftly with any new listings that come to the market. An important item to remember is that even if you are able to get a property under contract, you typically have the inspection period to fully analyze the situation and come to a final decision.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!