Thus far, the Canadians have been the main foreign buyers of proprieties in Florida; but now, things seem to have changed, and there are numerous Asian investors who have shown their interest into the Florida real estate market as well. Some say that the Canadians should not fear the Asians, as they are not their biggest competition for the Florida residential deals, and that they should rather dread the aggressive groups that make “bulk investments” and purchase dozens of condos at the same time. For instance, the Blackstone Group LP, which is a private real estate company with headquarters in the United States, just spent $2.5 billion on 16,000 houses in nine different cities in the U.S, including in Miami, and the investor plans to turn all the houses into rentals.
Still, now that leading propriety markets such as Toronto and Vancouver seem to become a little bit softer, the Asian investors appear to be changing their focus to the south of the border. So far, the Asian interest in Florida has surely intensified, and how the market has slowly begun to recover, it has become a real challenge to find homes under $150,000. Although Asian buyers are minor players on the Florida real estate market, they still are extremely active, and they show a lot of potential; thus, a possible development needs to be taken into account.
The Canadians ought to consider Asian investors, and they should really find methods to fight back the large numbers of “bulk investments” as these are their main competition. Considering that the real estate market in Florida is just starting to recover, prices are not very high so it’s the perfect time for this type of investors to start acting.
These days, increasingly more Americans have been approved a mortgage, but the buyers from other parts of the world, such as Brazil have invaded the market, offering to pay even twice the demanded price for the property. It seems like they are in a shopping spree for houses, and they are ready to pay up to $300,000 for a house, a price than neither the Americans, nor the Canadians would afford.
Knowing all these things, you can easily notice that there are many changes taking place in the Florida real estate market. Nevertheless, this can easily go sideways and nobody can know for sure what will happen. People who have just bought a home are more than happy with their decision, because considering the high demand a lot of prices will rise. On the other hand, it is a less fortunate happening for those who have just started looking for a new place, because although they have been approved a mortgage, they might not find a home suitable for their budget if costs keep going up.
Although from a buyer’s point of view, this is not the most fortunate situation, it may be a good thing that there is shown such a great interest into the Florida real estate market because this could be the push it needs to overcome the economic crisis completely.