On November 8, 2021, the Biden administration eased the pandemic-related travel restrictions allowing vaccinated travelers with negative COVID-19 tests from 33 countries, and real estate agents are bracing for a wave of international buyers to flood the South Florida housing market.
The influx will test an already tight housing market experiencing all-time low inventory and record high sales.
Miami International Airport reported 5,000 more international arrivals this Monday than a week ago.
About one of out of every two foreign buyers looking to purchase in Florida have their eyes and wallets set on South Florida's tri-county area. Most foreign buyers are coming from Canada, Argentina, Brazil, Colombia, and Venezuela, according to a recent report by Florida Realtors.
Canadians have been making most of the home purchases since last December.
Complicating matters for local and international buyers alike, South Florida is facing record lows in available homes, condos and townhomes, which is resulting in multiple-offer scenarios, many of which are won by cash buyers able to close quickly with no financing or appraisal contingencies.
"In Palm Beach County, there is only enough inventory for a little over a month, a 51% decrease from the year before. Broward County is facing a 1.5 months supply of inventory, a 40% decrease from the year before. Similarly, Miami-Dade County has a 2.2 months supply of single family homes, a 42% decrease." Amber Randall, South Florida Sun Sentinel
Rising prices seem to be affecting local buyers who are financing their purchases the most, as it is difficult to compete with foreign cash buyers who deem the rising prices a bargain as compared to other international markets.