Seven out of 10 homes are bought by Latin Americans, headed by Venezuelans and Argentinians, with many paying higher than the Florida mean, resulting in big fees for agents
Latin American buyers dominate Miami international property sales, accounting for 70% of deals, new data shows.
Around three out of 10 real estate deals in Miami are from overseas buyers, with many paying above-average prices for properties, resulting in big commission pay-outs for agent, the 20th Miami International Real Estate Congress has heard.
Around 300 realtors and brokers, including around 70 agents from Brazil, Argentina, France, Italy, Ecuador, Colombia and the US Virgin Islands, attended the event from 2-4 November at the Biltmore Hotel, Coral Gables.
Venezuela leads the national buyers’ table on 16%, with Argentina on 13%, Brazil, Columbia and Peru on 8%, Canada and Russia on 6%, Ecuador, Honduras and Mexico on 5% and China on 3%.
In nearby Fort Lauderdale it is a different story with Canadians being by far the leading nation at 37%, following by Brazil on 11%, France and Venezuela on 9%, Columbia on 7% and Argentina, the UK and Israel on 4%.
Teresa King Kinney, CEO of the Miami Association of Realtors (MIAMI) told the conference, “Miami is the most international city in the entire United States”, the Miami Herald reports.
International deals account for 29% of all transactions in Miami-Dade and Broward counties in the past year, according to the latest Miami Market Update.
In the last three years, Miami residential sales have hit record levels are set to do so this year, or at least get close to it, the conference heard.
The mean price of a South Florida property bought by a foreign buyer was US$444,052, getting on for double the mean of US$245,000 for all Florida home sales.
Brazilians had the highest mean purchase price at US$494,531, while Canadians had the lowest, at US$310,484, the report says.
Alicia Cervera La Madrid, Managing Partner of Miami-based Cervera Real Estate, says, “We’re probably paying some of the highest commissions in the world — between five per cent and seven per cent,”
Among keynote speakers were Dr Lawrence Yun, chief economist of National Association of Realtors (NAR); Moe Veissi, immediate past president of NAR; Philip Spiegelman, principal, ISG; and Duff Rubin, regional SVP Southeast Florida, Coldwell Banker Residential Real Estate and Ron Shuffield, president, EWM Realty International.
The MIAMI Congress is specially arranged just before the start of the 2014 NAR Conference & Expo in New Orleans, which starts tomorrow, Friday 7 November, and finishes on Monday 10 November.
Around 17,000 NAR members and guests are expected to attend the Conference & Expo, which has the theme of in Full Swing!, and aims to help Realtors prepare their business for 2015.
By Adrian Bishop, Editor, OPP Connect