Realtors report fewer foreign buyers are flocking to Florida

The ever-fluctuating flow of foreign homebuyers is ebbing, the National Association of Realtors said in a report released last week.

After hitting a record $153 billion for the period from April 2016 to March 2017, the level of international sales fell to $121 billion for the year ending in March 2018.

Florida remains the top destination of foreign buyers, ahead of California and Texas, but Florida’s share fell from 22 percent of international transactions last year to 19 percent this year. Canadians and Brits are the most common international buyers in Florida.

While NAR doesn’t break out dollar volumes by state, it does say that Florida’s home sales to foreign buyers fell from 62,590 homes last year to 50,692 properties this year.

NAR says the downturn can be blamed on the same issue vexing domestic buyers: Supplies of homes are tight, leaving buyers with few choices.

“Inventory shortages continue to drive up prices and sustained job creation, and historically low interest rates mean that foreign buyers are now competing with domestic residents for the same, limited supply of homes,” NAR Chief Economist Lawrence Yun said in a statement.

Because there’s no central cash register ringing up sales to foreign buyers, NAR’s numbers are based on a survey of 10,303 Realtors.

Inflows of international buyers are affected by a variety of factors, including the strength of the dollar and political upheaval in Latin America and Europe.

“The strength of the dollar vs. the euro and the pound sterling has not been encouraging for a

lot of international buyers,” said John Mike, an agent at RE/MAX Prestige Realty in Royal Palm Beach who often works with British buyers.

Ongoing negotiations over Britain’s exit from the European Union also have added uncertainty, Mike said.

Also last week, the Realtors of the Palm Beaches and Greater Fort Lauderdale reported the inventory of homes for sale in Palm Beach County remains low, with a 4.8-month supply of houses on the market. Realtors said there were 6,858 houses for sale in June, a 2 percent decline from a year ago.

Reflecting a tight market, sales volumes fell. Just 1,805 houses were sold by Realtors last month, down 2.7 percent from June 2017, the monthly report said.

The lack of supply gives sellers an advantage.

The typical house sold by a real estate agent last month cost $355,000, up slightly from $354,000 in May and $ 345,000 in June 2017, and went to contract in just 43 days, down from 46 days in June 2017.

Houses priced at $200,000 to $250,000 occupied the hottest spot in Palm Beach Count y ’s housing market in June. Properties in that price range found a buyer in a median of just 27 days.