Florida remains the nation’s top destination for foreign home buyers, but a strong dollar and weak currencies overseas have created a drag on international investment.
That’s according to the National Association of Realtors’ 2016 Profile of International Activity in U.S. Residential Real Estate, which found a slight decline in foreign buying from 2015 to 2016.
Florida was the No. 1 state for foreign buyers, attracting fully 22 percent of international deals. That was up from 21 percent last year but down from 31 percent in 2011, NAR says. California remains No. 2, but it has closed the gap in recent years.
Blame Canada, as the South Park song goes. Amid plunging oil prices and a weakening loonie, Canadians have lost their appetite for U.S. homes, and Florida is their favorite place to buy. Chinese investors, meanwhile, continue to buy, but Florida isn’t among their top five destinations.
In another sobering note, the Venezuelan bolivar is off 38 percent against the greenback, while the Brazilian real is off 18 percent. And the pound’s recent plunge might create another headwind for Florida-bound buyers.