Foreign Investors Taking Over The Marketplace
Canadian buyers are helping to revive the Florida real estate market. In fact, reports show that as many of 500,000 Canadians now own property in the State of Florida. While the purchases are occurring all over the State, it is the west coast communities such as Tampa Bay, Sarasota, Port Charlotte, Punta Gorda, Fort Myers and Cape Coral that are benefiting the most from the rush. Some of these real estate markets have increased as much as 30% over the past year thanks to help from Canadian buyers. However, the Canadians are not alone. It should be noted that both Asian and South American buyers are helping to increase the surge as well. The impact has been so great that the average price for a single family home recently increased to $168,000 in the state of Florida. Meanwhile the average condo prices increased to $136,000 across the state.
So what makes Florida so attractive to these foreign buyers? Experts say that it is a combination of factors. First, the depressed property prices left over from the real estate boom make buying property in Florida extremely attractive over other states. The surplus of homes built in the state during the real estate boom has fueled a market for foreign investors looking to cash in. Another attraction is Florida’s tropical climate and beaches. Additionally, we are seeing historically low interest rates, which make financing a home, and then renting it a very attractive option. These buyers are taking advantage of these factors to rent their properties and then eventually resell the property when the market recovers, or eventually retire to the area themselves. It is not only the real estate market that is benefitting from the foreign buyer. Florida has seen a whole new category of snow birds brought into the state. The effects are enjoyed across the tourism, retail, and food and beverage industries as well. In the end, the purchases are a welcome sight as homeowners across the state begin to see their property values once again rise, and the potential for equity grow.
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