The Florida property market remains the most popular as far as foreign buyers of USA properties are concerned, according to a new infographic from Credit Sesame.
The interactive chart, based on data from the National Association of Realtors, compares each state's foreign-born residents to show that close to one-third of all U.S. real estate transactions takes place in the Florida property market.
Almost 80% of foreign-born U.S. residents owned a home in 2009, Credit Sesame reports, which is higher than the national homeownership rate of 65.4%. Foreign investors represent $82 billion of U.S. real estate.
"35 states combined make up 17% of all real estate purchased in the United States by foreign buyers", says the report.
Florida property market leads the way, accounting for 31% of all foreign property transactions, followed by California, with 12% of the country's international purchases.
Canadian buyers account for the majority of international sales in Florida, followed by buyers from the UK. There is also high demand from people in Western Europe and buyers from Latin America, while more Asian investors are eyeing up Florida property investment opportunities.
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A growing number of Brits are targeting reduced priced property in Florida, with homes in Orlando proving particularly popular, according to UK-based firm, the Overseas Guides Company (OGC).
OGC, which provides Brits with up-to-date guidance and advice on purchasing properties abroad, saw a 35% increase in enquiries in the final quarter of 2011 compared with Q4 2010, with demand for properties in USA showing the strongest hike in popularity.
A new statistical report issued by OGC confirms the USA as the destination of choice for Brits, as it recorded the highest level of growth in terms of enquiries during 2011.
While the USA property market recording an 11.11% share for the year as a whole, it accounted for 13.3% in Q4 2011 compared with just 3.62% in Q1 2011. The USA’s gain may be Europe’s loss but it suggests that interest in buying property overseas is still strong.
A key driver for the overall rise in demand for properties in USA was a surge in the volume of Brits targeting homes in Florida, where prices remained low and opportunities for cash-buyers to snap up bargain holiday homes in Orlando, among other parts, were abundant.
For pure investors, the crisis in the Eurozone could well have made the U.S. property market even more attractive proposition than a property in one of the single currency zone's more fragile economies.
Richard Way, editor of OGC, said: "What stands out for us at OGC is the continued interest in buying overseas property. The unprecedented price drops in a number of countries, noticeably Spain, Portugal and Florida, have attracted buyers who could not afford to buy abroad before the downturn, or simply were put off by the prices.
“Furthermore, as other forms of investment have become less attractive in terms of ROI and risk, people have considered investing in something that not only offers a potential long-term capital gain but which they can also get pleasure from, that's to say a holiday home somewhere warm.”
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Miami home sales set a new record in 2011, exceeding transaction levels during the height of the real estate boom in 2005, on the back of a general rise in demand for properties in Florida, according to the 26,000-member MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
Total 2011 sales, including both condominiums and single-family homes, in Miami-Dade County were 24,929, up 4% from the 24,025 in 2005 and 46% from 17,068 in 2010. Year-end closed sales of condominiums increased 54%, from 9,760 in 2010 to 15,009 in 2011. Total single-family home sales increased 36% from 7,308 in 2010 to 9,920 in 2011.
“The Miami real estate market exceeded all expectations in 2011, posting record sales that yielded rising prices,” said Jack H. Levine, 2011 Chairman of the Board of the MIAMI Association of REALTORS. “Miami is a very unique city in most ways, and the real estate market recovery proved no different. Miami is hot, and it’s not just the weather!”
The sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 16% in December, from 734 to 734, compared to December 2010. Sales of condominiums increased 22%, from 985 to 1,200, compared to December 2010.
“2011 was a remarkable year for the Miami real estate market,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “Unlike other markets throughout the U.S., Miami has recovered faster and stronger than expected and is poised for further growth and double-digit price appreciation in 2012.”
Statewide sales fell 2% to 6,836 for condominiums and 2% for single-family homes to 15,290. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 5% from November and were 3.6% higher than they were in December 2010, according to the National Association of Realtors (NAR).
In the Miami MSA, the median sales price of condominiums in December spiked 31% to $129,900 (£83,400) from a year earlier. The median sales price of single-family homes jumped 16% to $182,300 (£117,200).
Average property prices rise
Statewide median sales prices in December increased 4% to $91,900 (€69,640/£58,330) for condominiums and 1% to $134,300 (€101,770/£86,300) for single-family homes. The national median existing-home price for all housing types was $164,500 (€124,670/£107,000) in December, a 2.5% drop from December 2010.
“International buyers and investors continue to play a major role in boosting market performance in Miami,” said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. “Miami is the top area in the U.S. for international real estate buyers. These buyers from worldwide markets will continue to strengthen the Miami market long into the future.”
Inventory falls 40% in one year
The inventory of residential listings in Miami-Dade County dropped 39% from 24,278 in to 14,087 over the last year. Compared to last month, the total inventory of homes dropped 8%.
Currently, there is a 4.9-month supply of condominium inventory and a 5.8-month supply of single-family homes in Miami-Dade County, reflecting a very healthy marketplace. Total housing inventory nationally fell 9.2% at the end of December.
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The Jacksonville housing market in northeast Florida has been ranked #4 of the “Top 20 Healthiest Housing Markets” in the USA.
According to Building Magazine: "Seeing a Florida market so high on our list of healthy markets may be a surprise to some. But Jacksonville’s strong employment base has helped it come back before many of the services-dependent housing markets to the south.
A strong military presence has always anchored the economy. But a growing financial services sector has added employment in recent years. Employment is expected to rise 3.2 percent next year. Median income is projected to rise 3.3 percent."
"Thanks to job growth and a diminished supply of foreclosures, home prices have stabilized; they are slated to rise nearly 5 percent next year. It helps matters thatDuval County, home to Jacksonville, has the highest average annual wages in Florida, according to the U.S. Bureau of Economic Analysis. In 2009, wages stood at $58,505."
Builders and developers must sense the market for buying property in Florida is poised to recover. They have pulled 28 percent more permits through the first half of this year than last. Moody’s expects that growth to accelerate in 2012, with permit activity nearly doubling. Roughly 70 percent of the action is in single-family housing.
Note: Builder magazine´s “Markets Index,” uses data is weighted by Hanley Wood Market Intelligence. The forward-looking projections are based on what drives housing and they take a look at jobs, income growth, price appreciation and population growth
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Rental yields in the top 20 most populated US metro areas increased in 2011, on the back of higher rents and cheaper property prices, according to Hotpads.
Data provided by the national housing search engine shows that rental prices for two-bedroom units increased by 3.75% in 2011 whilst asking prices for the same type of property declined by 1.83%. 
Studio rentals remained the highest growth property with a 7.12% increase over the year, with one and two bedroom rental properties also seeing a price increase of 2.59% and 3.75% respectively, but three bedrooms homes dipped in price by 0.31%.
Based on median listing price, properties in Florida, such as Miami, had some of the most expensive rental listings in the U.S. for two bedroom properties, along with New York, Boston, San Francisco, Los Angeles, and Chicago.
The report says that demand for rental properties should “remain high throughout 2012”. But it also expects to see more people buying homes in Florida and the wider USA, on the back of cheaper asking prices.
It stated: “As the price of homes for sale continues to decline, we believe more people will consider buying over renting. We also predict more foreclosed and long standing for sale properties will re-enter the market as rental units in 2012, which should increase the rental supply and help ease prices. However, if economic conditions extend consumer uncertainty, we may continue seeing would be home owners continue to rent.”
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The USA property market is the most affordable among comparable countries, according to an international housing affordability survey.
The eighth Annual Demographia International Housing Affordability Survey, which covers affordability, measured as median house price divided by gross annual median household income, across 325 metropolitan markets globally, suggests that homes in USA currently represent good value for money and potential room for capital growth.
A median multiple of 3 or below is considered affordable, while those markets with a house price to income multiple of 5.1 and above is considered severely unaffordable.
In 2011, the USA property market scored a median multiple of 3, same as that of 2010. Ireland, where property prices have tumbled since the market peak of 2007 as a consequence of the financial crisis, ranked the second most affordable, with a multiple of 3.3.
In stark contrast, the median multiple in Hong Kong was 12.6, followed by Australia at 5.6, New Zealand at 5.2 and the UK at 5.1.
Of the 81 major metropolitan markets analyzed with a population of over one million, 24 had affordable housing. All of them were located in the USA, suggesting that there are some real bargains available at the moment.
Detroit was the most affordable major market, followed by Atlanta. Phoenix and Las Vegas scored a median multiple of just 2.2 and 2.4 respectively.
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While the USA property market continues its long road to recovery, the property market in Spain remains in dire straits.
A fragile economy, a glut of housing, unreliable statistics and corruption are just a few issues that have had a negative impact on the Spanish property sector. Property prices across the country have plummeted by up to 60% in the past four years, and with the banks sitting on an estimated one million foreclosed homes, things could be about to get whole lot worse.
In stark contrast to wider market concerns, there are tentative signs that property market conditions are improving on the Costa del Sol – a popular holidaying destination, as more homebuyers purchase heavily discounted homes in the region.
The volume of unsold new build properties fell by 40% in 2011 which is significant because an oversupply of homes has been the main cause for the decline in property prices in the Costa de Sol.
According to the Association of Builders and Developers of Malaga (ACP), home to the Costa del Sol, property developers sold around 10,000 new homes last year.
So is there an opportunity for property investors on the Costa del Sol? Well, the answer in short is ‘yes’. The region continues to attract millions of holidaymakers each year, providing holiday homeowners with an opportunity to let out their properties, with a good annual rental return achievable in some parts of the area.
Furthermore, with housing construction having come to a virtual halt, the existing supply of properties will eventually be digested, which could present an opportunity for future capital growth.
Mark Stucklin of Spanish Property Insight said: “Given the long lead times in the building industry, there could be an acute shortage of new housing a couple of years from now."
He added: “Shortages will be made worse if demand recovers to its normal level of around 22,000 new homes a year, based on the size of the population. However, unemployment or fear of unemployment is keeping many potential buyers out of the market.”
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The number of new single-family homes increased by 4.4% to a seasonally adjusted annual rate of 470,000 units in December, according to the U.S. Commerce Department, acting as a further indication that USA property market conditions are improving. It is the third successive rise for new single-family homes, and the fastest pace since April 2010.
“Today’s report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide,” says Bob Nielsen, chairman of the National Association of Home Builders.
He added: “This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers, as well as the continuing foreclosure crisis and the challenges of obtaining accurate appraisal values on new homes.”
By the end of 2011, overall housing production reached 606,900 units – 3.4% better than the overall number of starts in 2010.
Regionally, December housing starts increased by 54.8% in the Midwest following a big decline the previous month. The Northeast posted a 41.2% fall that offset a big gain in the previous month, while the South and West also posted declines of 3% and 17.6%, respectively.
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President Barack Obama visited Orlando, Florida last week to announce new international travel policies, in a move which could further boost international demand for properties in Orlando, as well as the wider Florida property market.
Obama wants to make it easier for tourists to travel to the Sunshine State, and is specifically targeting growing economies, such as China, Brazil and India, which could drive greater demand for holiday and investment properties in Orlando. 
Demand among overseas nationals, including Chinese property investors, for properties in Florida has increased in recent years, as buyers look to take advantage of the recent market crash and purchase reduced priced homes.
“The more people come to the country, the more money they are spending … and obviously this has a stimulative effect on the economy,” a White House official said.
Certain changes could make the U.S. and Florida more appealing, such as more consuls dispatched to Brazil and China to reduce visa processing times and faster airport checkpoints for “low risk” visitors.
“America is open for business,” Obama declared in a Disney theme park. “We want to welcome you.”
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Securing a good USA property deal is likely to get harder if foreclosure levels slow down, as is expected and aided by proposed mortgage write-downs.
Many existing homeowners struggling to keep up with mortgage payments could be about to receive a major boost, after it was unveiled that as many as one million homeowners would get write-downs in the size of their mortgages under a proposed deal with banks over underhanded foreclosure practices.
Speaking at a Conference of Mayors meeting in Washington, Shaun Donovan of Housing and Urban Development, said: “We’re very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help.”
Using Donovan’s estimate, the settlement could provide a reduction of about $20,000 (€15,500/£12,400) for each of the one million borrowers.
“Principal reduction can have a substantial impact on the housing market nationally,” Donovan said.
With over 30% decline in home prices since 2007 and a large volume of vacant, foreclosed homes flooding the market, the USA property sector has struggled to recover from the crash. It is estimated that about 22% of U.S. homes are in negative equity, according to Core Logic.
But with more national and international purchasers entering the market, including astute property investors, residential inventory levels across parts of the country are falling.
The Orlando property market, for example, has seen a significant fall in the glut of homes on the market in the past year, with inventory levels reportedly down by in excess of 50% year-on-year.
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