It’s no secret that foreigners have been purchasing second homes here in Florida, and throughout the Tampa, St. Petersburg, and Clearwater Beach areas.  The information provided was complied from 3 recent news articles, and the Florida  International Survey-2011.

How do foreign home buyers impact the Florida Real Estate Market?

According to recent reports, International buyers are expected to buy even more in 2012. Florida has been the front-runner in International sales since 2009.  Condos continue to be foreign buyers’ residence of choice with condominium sales accounting for more than 70 percent of purchases.

International buyers are largely cash buyers and buy homes at a higher price point. Recent statistics show that 1 in 10 foreign home buyers purchase in the Sarasota-Bradenton area.  But they aren’t the only buyers attracted to our sunshine state.  Another study by Trulia  listed the Tampa- St. Petersburg- Clearwater area as number 4 in the top 10 Florida cities Chicagoans love.  Not a coincidence  for me, as I have clients right now from Chicago looking to purchase here in Tampa.  As a result, home prices have risen while inventory has fallen.

By now you’ve probably heard the term “buy a home, get a visa”.  Another possible boost in the International home buyers market is a bipartisan bill that two Senators will be introducing that would give any foreign home buyer a visa.  All they would need do is spend $500,000 in residential real estate and they receive a visa to live in the U.S.  

• Purchasers would be able to spend the entire amount on one single family house, condo, or townhouse, or they have the option of spending $250,000 on one home and spending the rest on other investment property they could rent out. This would be a complimentary bill to the current bill that allows foreign business owners a visa when they purchase property that will create jobs.

Find which countries are investing the most in real estate, what type of properties they buy and more.
You can download the full 47 page report here.

With these statistics, sellers can now feel free to put their property up for sale in what is looking like a better market every day. As for buyers, don’t expect the high inventory of homes that has been seen in the past few years. Homes are selling.

The latest 3rd Quarter Tampa Real Estate Market report just came out.  If you are still on the fence about buying a home here are some interesting facts:

• In January of 2011 our average sales price was 134,856 with 11.1 months of inventory on the market.
• In September of 2011 our average sales price climbed to 161,146, with only 5.8 months of inventory on the market.
• Homes priced under 50,000 have only a 3.6 months supply, while homes listed at 1 million and up show a 40 month supply.

If you are a buyer looking for luxury homes in Florida this may be the best opportunity to strike a deal with motivated sellers.  There are 284 homes listed for sale at over 1 million and only 7 of those sold in the month of September.  Pretty discouraging stats for sellers to say the least.  Still think you don’t have negotiating power?  Want to see what you can get for the money? Check out our MLS listings here. 

This is just a snapshot of our current housing market.  If you are looking for the most accurate information and statistics you can download the full report here.

Despite the downturn nationally and in the Tampa Bay area, real estate still remains a solid long-term investment.

Here are ten (10) reasons why:

1. Baby Boomers. National demographics point to an aging U.S. and developed market population.  Older Baby Boomers in the U.S. love the sun and great amenities Florida has to offer. Baby boomers are one of the most economically advantaged groups in the nation and consistently list Florida among the top retirement destinations.
2. Retirement Mecca. According to research conducted by the U.S. Census, Florida, California and Texas will account for 46 percent of total U.S. population growth by the year 2030, much of this is because these warm weather states are where retires want to live.
3. No Personal Income Taxes. Florida is one of nine states without a state income tax.  Our annual influx of vacationers and Snow Birds pay much of the tab for residents through a number of sales and use related taxes.  This is very attractive for Tampa residents, especially when there is discussion of raising U.S. income taxes or eliminating loopholes.
   

   Downtown St. Pete

4. Continued Growth. Florida is growing again after its first decline since the 1940s.  According to the University of Florida’s Bureau of Economic and Business Research, Florida added more than 21,000 residents between 2009 and 2010. The second greatest growth in new Florida residents came in Hillsborough County, home to Tampa.  This growth means demand for real estate and, therefore, greater resale values.
5. Affordability. Tampa homeowners have experienced roughly a 50% adjustment in value, making property more affordable than they have been in years.
6. Interest Rates. Interest rates remain at historic lows making the cost of borrowing a great long-term value and it allows housing to remain highly affordable.
7. Long Term Price Increases. Long term demand coupled with declining housing starts will create long term upward pressure on prices.  Historically low Federal Reserve Funds rates are creating inflationary pressures that should drive prices higher.
8. Tightening Lending Standards. The sub-prime mortgage situation has resulted in banks tightening lending, which should guarantee future price appreciation once current inventories are absorbed without further bubbles.
9. Waterfront Living. Great real estate really comes down to one thing: Location, location, location and the Tampa area has some of the best waterfront values in the nation.  There is only so much waterfront property and it always seems to be in high demand. (You can search here for MLS listings in the St. Pete, Clearwater and Tampa areas)
10. Portfolio Diversification. You have got to live somewhere and real estate has historically been a great diversifier for an investment portfolio.  Of course, there are simple ways to own real estate such as via a REIT or REIT mutual fund, but the real opportunities to profit still come to those who buy the right property, at the right price and at the right location.

Jeff Diercks, CPA is Managing Director of InTrust Advisors, a boutique wealth management firm helping busy, affluent individuals achieve their goals and dreams through a unique planning and investment process that allows them to profit in almost any market environment.  You can find out more at www.InTrustAdvisors.com.

Related articles

• Tampa Housing Market Shows Increased Sales Activity. (thetamparealestateinsider.com)

INTERNATIONAL HOME BUYERS IN FLORIDA-NAR 2010 STUDY

Overall Foreign buyers recognize U.S. real estate as a desirable, profitable and secure investment. In addition, the weak dollar has made U.S. real estate an even more attractive investment for foreign buyers.

A total of only 19 percent of foreign buyers financed their home with a mortgage while 81 percent paid cash with no mortgage financing.

Half of foreign buyers purchased a property to use exclusively as a vacation home. About a fifth (21 percent) purchased a home to be used as a rental property. Given the limitations on the length of time that foreign buyers may be able to personally use their property, 24 percent of sales were for a dual use – as a vacation home for the buyer’s family and friends and as a rental property at other times.

Tampa, Cape Coral-Fort Myers and Naples rounded out the top 6 destinations in Florida, accounting for at least 5 percent of purchases by foreign buyers.

The fact is that Florida is still a desirable area for tourism, second homes and retirement communities.  With increased sales and great deals, the Tampa Bay area will rebound sooner than other parts of the Country that don’t have our beautiful beaches, tourist attractions and sunny weather!

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Thinking of buying a vacation home in Tampa Bay? With our white sandy beaches, the Tampa, St. Pete and Clearwater areas are one of the BEST places to invest.  Many buyers are getting properties for 50% less than what they had sold for in 2005 & 2006.

Here’s the latest stats and how Floridians see our future!

‘Floridians Still Love Florida’ – so reads a recent headline in the Tampa Bay Business Journal. According to a study by Leadership Florida and the Nielsen Co., most Floridians believe our home state is a good place to live and are encouraging friends and families from out of state to move here. That of course is good news for us because those people will need to purchase homes.

What is particularly interesting about the “2010 Sunshine State Survey” is that for the first time in the survey’s history, the majority of Floridians felt so positive about living the Florida lifestyle they would advise others to become their neighbors. Despite concerns about the economy and unemployment those surveyed also realized the importance of investing in economic development. In fact, 69 percent favor giving incentives to businesses to encourage them to expand or relocate to Florida.

More good news… A major finding is that 75 percent of respondents see a bright future ahead—a substantial increase over views expressed only one year ago. Overall, Floridians show a lot of enthusiasm for life in the Sunshine State.

Realtors are also enthusiastic about working in Florida, particularly here in the Tampa Bay area. Showing signs that a housing recovery is near is a recent finding that inventory in Hillsborough, Pasco, and Pinellas counties has diminished from 14 months last year to just eight months currently. There were 2,990 home sales in the tri-county area during March, reflecting a 32 percent increase over February.

Search all Homes for Sale, find out what homes sold for and more!

See also: Tampa Bay Area-# 5 on Cheapest Home Market List