It has only been a recent fact that international investors have been the largest revenue gain for the condominium market in Miami. However, it has been becoming much more costly for them to live there. The main reason behind why it is becoming more expensive is the strengthening of the U.S dollar. This accompanied with a current “boom” in the Miami real estate ,market, it is becoming difficult for foreign investors to find worth in purchasing property overseas. Countries such as Argentina and Brazil, which are recurring buyers for Miami real estate, have seen their currency decrease and have been affected negatively. The same has gone for Chinese investors, but they have become immune to the strengthening of the US dollar and are continuing to invest in Miami.
To put this in better perspective, it is easier to look at the Miami real estate market as two separate markets: the resale market and the reconstruction market. In the resale market the average price for a condo is $350/sqft which is nearly double from only about 5 years ago during Miami’s real estate disaster. Because of this increase in price, about 1,500 units went into contract last year which was a few hundred less than the year before. Even though there are less transactions, owners are having difficulty reducing their condo prices. Because of this there is an over-supply of condos. The average market has about 6 months of inventory available, but for these condos there were 8 months available.
On the other hand, the reconstruction market in Miami contributes to the over-supply of condo units. The average price of one of the 15,000 units to be built is $770/sqft. This requires foreign buyers to enter contracts putting down deposits of at least 50%. This makes it easier and offers more availability to foreign investors because most domestic purchasers would not want to put down over about 30%.
This all shows the dependency that the Miami real estate condo market has on foreign investors. Because foreign investors like to pay cash which is better for sellers in Miami, the strengthening of the U.S dollar decreases their purchasing power. This could potentially lead to foreigners pulling out of the market, and that gap will need to be filled by domestic investors.
amorhaimhpu 
Wow! What an impressive blog! I have to admit that I am a big fan of South Florida and its culture and read a lot of South Florida writers (Carl Hiassen, Randy Wayne White). So I find your real estate research fascinating.
There was a really impressive series in the NY Times this month called “Towers of Secrecy.” While the focus is on luxury real estate in NYC, I think it may apply to the Miami market as well. Check it out at: http://www.nytimes.com/2015/02/08/nyregion/stream-of-foreign-wealth-flows-to-time-warner-condos.html.
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