Responding to questions from CSANews, Matt Christopherson, NAR’s Director of Business and Consumer Research emphasized that “post-Covid, foreign purchases of U.S. residential real estate have actually held steady…holding at “just below two per cent of total nationwide existing home sales.” But he cautioned that, “with continued price growth in the U.S. and a competitive buying market among domestic buyers, it could present an even more challenging situation for possible foreign buyers, at least in the short term.” Christopherson emphasized that “efforts to produce more available housing inventory will help with the affordability issue around the country and in Florida, presenting more opportunity for Canadian buyers to invest in the smart and growing tool that is U.S. real estate.” On the upside, he noted: “Even with a less competitive currency conversion, Canadian buyers generally get much more for their money in the U.S., compared to major competitive Canadian cities from which they come.” See CHART A. And Then, There’s Florida. (Our data is supplemented by a survey from FloridaRealtor – an affiliate of NAR, covering international real estate sales of $12.6 billion in Florida between August 2022 and July 2023.) Florida was the top destination for all real estate foreign purchasers in the U.S. attracting 23 per cent of total transactions. California and Texas were next with 12 per cent each, and North Carolina and Arizona followed with four per cent each. Canadians were the top foreign buyers of Florida homes, accounting for 18 per cent of all completed transactions for a total value of $2.1 billion. Florida accounted for 55 per cent of all Canadian real estate transactions in the U.S. This dollar volume of $12.6 billion was less than the previous year’s $15.3 total, as higher prices and higher interest rates impeded many foreign purchasers from closing sales. Foreign buyers accounted for five per cent of all existing home sales in Florida – a market which is under great pressure due to short supplies, competition from domestic buyers and concerns about interest rates. It’s noteworthy that the median price for foreign buyers in Florida’s market in the survey year was $416,000, compared to $383,000 for domestic sales. Those figures tell a tough story – of a global economy still in recovery mode following Covid, worldwide inflation, disruption to vital supply chains and anxieties about wars in Europe and the Middle East. The number of foreign-buyer home purchases in the U.S., Canada’s biggest market partner, dropped to 84,600 in 2023, the lowest point since the NAR began measuring these sales in 2009. However, there are signs of vitality, and perhaps of rebound. And foreign buyers – Canadians among the leaders –continue to keep muscle in the market. CHART A Comparison of home prices in central areas of global cities and U.S. metros (Data NAR) Global Cities Price per square metre U.S. Metros Median home price 2022 Price per square metre Toronto $10,947 Miami/Fort Lauderdale/W Palm Beach $530 $3,170 Hong Kong $28,570 Tampa/St. Pete/Clearwater $380 $2,270 Beijing $11,829 North Port/Sarasota/Bradenton $480 $2,870 London U.K. $26,262 Phoenix/Mesa/Scottsdale, Arizona $475 $2,840 Rome $8,170 Las Vegas/ Paradise Valley $461 $2,760 Madrid $6,173 Los Angeles/Long Beach $793 $4,740 New York $17,191 Austin, Texas $541 $3,230 Taipei, Taiwan $10,373 San Diego $905 $5,410 Median home prices per 2022 U.S. Census Real Estate 30 | www.snowbirds.org
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