Miami Beach Real Estate: Foreign Buyers Continue To Gobble Up Condos
April 10, 2008
The city of Miami Beach is a famous international vacation destination, drawing tourists from all over the globe, and from other states as well.
The city is renowned for its wonderful Art Deco district, exciting and diverse dining and entertainment establishments, wide array of outdoor activities, and wonderful real estate options. In a recent study made by the National Association of Realtors in 2007, the state of Florida was considered the top destination for foreign buyers, who have accounted for around 26 percent of all transactions, and was ahead of California which was at 16 percent, Texas at 10 and Arizona at 6 percent.
A Lot Of Overseas Buyers Are Gobbling Up Condos Here
According to housing market analysts, more than 7 percent of all homes in the state were sold to foreigners, and an estimated 65 percent of real estate agents have noted that they had brokered at least one deal involving overseas buyers. More foreign buyers are stepping in to buy condos at a discount in this area, where prices have considerably dropped by 20 to 30 percent.
Among the motivating factors for more foreigners buying into condos here, is that the depreciation of the dollar has made overseas currencies much stronger. Canadian buyers, also were seen to have a particular interest in purchasing homes within the US, because the Canadian Dollar has been 25 percent stronger against the greenback in the last two years, which makes these types of buyers more than willing to pay for these condos with cash.
More Foreign Buyers Are Prepared To Buys Condos In Cash
It was noted by the National Association of Realtor’s study that a large segment of foreign buyers come prepared to pay for condos in this lovely South Florida city with cash. Foreign buyers here have noted great deals in the sale of beachfront condo buildings, and other properties with stunning waterfront views.
However, a large number of condo buyers also come from areas within the United States; with many coming from New Jersey, New York, California, Illinois and Texas. But housing market analysts note that local buyers continue to remain a minority in the overall percentage of condo sales. Its great t know that the condo market in this lovely city is not a local market, since it’s a global one, and although the prices may not sound cheap for local buyers, these wonderful home developments sure look like a bargain to overseas buyers.
Overall, the city has seen a 19 percent reduction in its total condo supply levels since last January. Foreign and out-of-state buyers are also much more likely to buy a condo unit in Miami Beach than they are anywhere in the Miami-Dade region, and the market will continue to see a widening gap between the Miami and Miami Beach condo supply numbers in the coming months ahead.
Many note that the combination of the weak dollar and the unique appeal of the city as a thriving, diverse, cosmopolitan, multilingual metropolis are helping to prop up a slumbering and overbuilt condo market that had been expected to suffer greatly because of the housing crunch, but until today, has only seen a small drop in prices as compared to other housing markets in the state.
Vanessa Arellano Doctor