Boynton Beach, Florida - We have information on Boynton Beach Home selling, home buying, mortgages and Florida Home Insurance. If you are preparing to buy or sell a home or condo in Boynton Beach you may have questions. We offer some of the trends in the Florida Real Estate market. We will be happy to provide any information you need to buy or sell real estate in Boynton Beach, and the surrounding Palm Beach County area.
Characteristics of First-Time Home Buyers
Foreign buyers were slightly more likely to purchase an existing home than was the case for all U.S. home buyers. REALTORS reported that 11 percent of foreign buyers purchasing a home in Florida bought a new home, while the remaining 89 purchased existing home, percentages which are the same as reported in last year’s survey. In comparison, NAR’s Profile of International Home Buying Activity, 2011 reported that nationally new home purchases were 15 percent of the total homes sold.
Thirty-nine percent (39%) of foreign buyers purchased a detached single-family home, compared to 51 percent last year. In contrast, single-family homes accounted for 88 percent of all homes sold at the national level in 2010. Forty-nine percent of international buyers purchased condos (up from 37 percent last year), compared to12 percent of condo buyers at the national level.
Buying Boynton Beach Homes and Condos
The location choices of foreign buyers differed markedly from the patterns reported among all home buyers nationally. Compared to all home sales, as reported in NAR’s 2010 Profile of Home Buyers and Sellers, foreign buyers were much more likely to purchase in a resort area (32 percent of foreign purchases vs. one percent of all homes sold nationwide) on in a central city/urban area (36 percent of purchases vs. 18 percent). The significant share of resort buyers is not surprising given the nature of the Florida market. In addition, international buyers found Florida’s central cities to be desirable locations in a number of instances.
Boynton Beach, FL Condos for Sale
Florida purchasers viewed Florida real estate prices generally as less expensive than real estate prices in their home country. International buyers tended to purchase homes at prices above the national median price of $172,900 reported for 2010. In 2010/11 the median price for Florida purchases by international buyers was approximately $174,700, compared to $180,000 in 2009. In contrast, the overall median prices in Florida for single family and condo properties were respectively $136,500 and $91,300 in 2010.
Foreign Buyers for Florida Real Estate
According to NAR’s 2010 Profile of Home Buyers and Sellers 91 percent of all home buyers used mortgage financing to purchase their homes. Among recent foreign buyers in Florida, however, the use of mortgage financing was much less frequent. Overall, 13 percent of foreign buyers were reporting as financing their purchase with a mortgage, while 86 percent paid cash with no mortgage financing. This disparity appears to be due to the differences in credit rating practices between the U.S. and foreign countries and the difficulties in confirming credit worthiness internationally.
Foreign buyers typically don’t have credit ratings that are computed on scales similar to U.S. practices, don’t have Social Security numbers, and have credit and asset profiles significantly different from U.S. expected characteristics. This makes obtaining a mortgage difficult for the foreign buyer.
Florida Property to Use as a Vacation Home
Forty-one percent (41%) of foreign buyers in Florida purchased a property to use as a vacation home. Approximately 23 percent purchased a home to be used as a rental property. Given the U.S. visa and residence limitations on the length of time that foreign buyers may be able to use personally their property, 25 percent of sales were for a dual use—as a vacation home for the buyer’s family and/or friends, and as a rental property at other times. Six percent (6%) of properties were reported purchased as a retirement home.
