The post-pandemic global economic recovery has been continuous, although pre-crisis levels have not yet been reached, affected by challenges such as the war in Ukraine and monetary policies against inflation, which have slowed growth. The IMF anticipates a decline in global growth from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024. High interest rates have discouraged the sale of homes with low rates, keeping prices high and complicating access to loans.
The US dollar strengthened in 2022 against other major currencies, although it has shown weakness in 2023. Between August 2022 and July 2023, international buyers in Florida faced higher prices, although the US real estate market remains attractive as a safe investment .
Low interest rates prior to 2022 slowed property sales, and the current high rate environment makes financing even more difficult, keeping prices at historic highs. Florida has seen one of the largest increases in home prices since 2021.
Domestic demand declined in 2022, balancing the market, but inventory remained limited through 2023. By July 2023, single-family home inventory in Florida was 24% lower than in February 2020. Median sales price reached $420,000 , with sustained growth in all metropolitan areas, although without the previous double-digit increases.
Purchases by international buyers in Florida fell 18% between August 2022 and July 2023 compared to the previous period. The economic reopening and fewer restrictions boosted international sales, although they did not reach pre-pandemic levels. Despite higher prices, dollar volume was in line with 2021’s $12.6 billion, down 18% from the prior year. Purchases were concentrated in South Florida, especially in Miami-Fort Lauderdale-West Palm Beach, with a predominance of buyers from Latin America and the Caribbean.
43% of international buyers chose central urban areas in Florida, an increase from 34% in 2021, reflecting the preference of Latin American buyers for Miami. Nationally, 35% of international buyers in the US opted for central urban areas.
For more information or advice on purchasing real estate or business assets in the United States, contact Carlos Cardenas The Cardenas Group Realty 954-707-0927 WhatsApp [email protected] Instagram @cardenasgrouprealty
by CEDOC