The recent run up in housing demand over the past 18 months or so has come largely from domestic buyers. The reason for this has been due to the tight travel restrictions on foreign nationals. This is significant for markets such as South Florida that see a significant percentage of home purchasing activity coming from foreign nationals. With this said, it is likely that we may see an increase in foreign home buyers in the months ahead.
Travel restrictions are easing
The White House recently announced an updated plan for foreign travel into the U.S. All foreign travelers flying to the U.S. will need to demonstrate proof of vaccination before boarding a flight, as well as proof of a negative COVID-19 test taken within three days of the flight. As for unvaccinated American citizens returning to the U.S., The Biden Administration has tightened restrictions even further. These unvaccinated U.S. citizens will need to be tested within a day before returning to the U.S., as well as after they arrive home. Lastly, full vaccinated travelers will not be required to quarantine.
Although it is not immediately clear which vaccines will be acceptable under the U.S. system, it is likely that only those approved in the U.S. will be accepted. However, the administration stated that this decision will be up to the Centers for Disease Control and Prevention (CDC). A decision from the CDC will need to come soon as this policy is set to take effect in early November, in order to allow airlines and travel partners time to prepare to implement the new protocols.
Summary
It is important to note that these travel restrictions are strictly related to air travel into the U.S. Needless to say, the disaster at the Mexican border is a different crisis for this administration. Unfortunately, the lack of a federal government presence at the southern border is resulting in other challenges, including those related to public health during the pandemic.
As for legal travel by foreign nationals into the U.S., we should likely see an increase in foreign home buyers in the months ahead. For markets such as South Florida, this should lead to increased home sales.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. 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!
