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In addition to the extremely low inventory of residential homes in Florida and high demand from American residents from other states, the Florida real estate market is now facing another factor that pressures property prices: pent-up demand from international buyers.
With the opening of the American borders to several countries last November 8th, the US started to receive tourists and investors who were waiting to visit the country in person to buy real estate. The South American public, especially Brazilians and Mexicans, remained with their investment objectives in Florida, even though they were unable to travel. In fact, this desire to buy has increased in recent years with the South American political and economic instability. Buying luxury properties in Florida has become one of the best strategies to peg part of the equity to a strong currency and economy.
Pent-up demand surfaces with reopening
The problem is that, with the closing of borders, most international buyers preferred to wait than buying remotely. “The purchase of real estate from a distance in Florida has evolved a lot in recent years and some investors took advantage of the moment to make solid dollar investments in both Orlando and Miami”, explains Heloisa Arazi, broker and owner of AMG Realty in Miami. “Despite being a safe and transparent procedure, most of the international buyers still prefers to make the purchase in person, creating a pent-up demand that is now surfacing”, she adds.
With the reopening of borders, not only South Americans, but Canadians and investors from other European countries also chose to travel to Florida and fulfill their dream or investment of owning a property in the Sunshine State. This pent-up demand from international investors is a major factor in an already overheated market, with reduced inventory and high demand.
“Today, Florida is facing a real buyers’ war,” explains Heloisa. She mentions the so-called “Bidding-War” where some properties are receiving 5 to 6 offers at the same time. The consequence cannot be anything other than the rise in prices. In fact, Central Florida experienced an average home price appreciation of 20% in 2021.
Buying Real Estate in Florida remotely is safe and transparent
The physical presence of a Florida property buyer was no longer mandatory even before the pandemic. Only in some exceptional cases, mainly involving financing, did some banks require the physical presence of the buyer to sign documents. With the pandemic and the need for procedures to enable operations remotely, even that is no longer necessary. Everything can be done remotely, from the property search to the closing procedures.
Want to learn more about buying a home remotely ?
AMG International Realty is a global real estate company specialized in Florida. We have long experience and excellent relationships with leading Florida institutions, from mortgage brokers to title companies, as well as extensive partnerships with professionals in many different ares directly or indirectly relate do Real Estate in US, so we make it possible to purchase property in Florida safely at a distance, transparent and fast.
If you want to know more about how to take advantage of investment opportunities in the Florida real estate market, chat with me now on WhatsApp: +1 305 318 6968 (Heloisa Arazi).
