Florida —Orlando, in particular — attracts international homebuyers that shore up the housing market.

Florida again leads the nation as international homebuyers’ location of choice, with 23 percent of all international buyers in the United States choosing to buy a home for investment or vacation purchases in the state. California follows, with 13 percent of buyers, along with Texas (10.7 percent) and Arizona (7.1 percent).

According to the 2009 NAR “Profile of International Home Buyers in Florida,” prepared for the Florida Association of Realtors, Orlando alone attracted 11 percent of all international buyers, a second-place tie with the Bradenton–Sarasota–Venice region. Miami–Fort Lauderdale–Miami Beach landed the greatest percentage of international buyers, 27 percent.

Western Europeans and, in particular, residents of the United Kingdom love Orlando, with 53 percent of all Western European buyers selecting a property in Orlando and 43 percent of all U.K. buyers doing so.

Study data shows that international customers represent an estimated 30 percent of Florida’s existing-home purchases. Applying that statewide percentage to Orlando’s 2009 year-to-date sales (14,496 as of Aug. 31) translates to 4,349 homes going to international buyers in that period.

“International buyers represent an important sector of the real estate market, as their presence expands the pool of buyers and in turn helps to stabilize pricing,” comments Orlando Regional Realtor Association President Les Simmonds of L.G. Simmonds Real Estate Corp. “In other words, the demand caused by international buyers helps protect Orlando’s real estate values from further decline. International activity has also helped absorb some of the excess inventory that has troubled Orlando in the past few years.”

International buyers’ interest in U.S. real estate overall has declined due to the worldwide recession and severe credit crunch, cites the National Association of Realtors, resulting in a sales decrease of about 9 percent. A significant number of foreign buyers (67 percent) paid cash for their Florida properties, in part because obtaining a mortgage was more difficult than in prior years. The total dollar volume was $38.7 billion.

Foreign buyers, however, recognize U.S. real estate as a desirable, profitable and secure investment, contends Zola Szerencses of RE/MAX 200 Realty and chair of the Orlando Regional International Council. Furthermore, the dollar’s weak position against foreign currencies has made U.S. real estate an even more attractive investment, she notes.

Recent improvements in the credit market will help reverse the slide in foreign buying, Szerencses adds: “Stock market gains and improving bank balance sheets will permit a greater amount of lending for second-home purchases. In addition, expanding foreign economies for international buyers and favorable exchange rates give them more purchasing power, particularly in a period of record-high affordability conditions in the United States. Property investment here generally builds wealth over the long term.”

U.S. laws do not restrict or scrutinize most property purchases by foreign nationals. There are few barriers to owning property here, unlike transactions in many other countries, although immigration laws prohibit foreigners from remaining in the United States continuously for more than six months without a special visa. Also, international investors are afforded the same property rights as those enjoyed by U.S. citizens.

In terms of style, slightly more than half of Florida’s foreign buyers (52 percent) bought a detached single-family home, compared to 78 percent among all buyers nationally. Approximately one-third (34 percent) of foreign buyers in Florida bought a condominium, 7 percent a town house or row house and the remaining 7 percent some other type of home.

Location choices of foreign homebuyers in Florida differ markedly from the patterns reported among all foreign homebuyers nationally. Nearly one-third (31 percent) bought a home in a suburban area, compared to 55 percent nationally. Nearly another third (32 percent) bought a property in a resort area, as compared with only 2 percent nationally. The significant share of resort buyers isn’t surprising, given the large share of vacation homes bought by foreign buyers. Almost three in 10 (28 percent) bought a home in a central city, and fewer than one in 10 bought a property in a small town or rural area.

With home prices down across the state, international buyers were able to buy discounted properties, with 14 percent buying homes for less than $100,000. One-quarter of homes bought by foreign buyers in a 12-month period sold for between $100,000 and $199,999, while a nearly equivalent share (22 percent) were bought for prices ranging from $200,000 to $299,999. One of 20 properties bought by foreign buyers sold for at least $1 million. The median purchase price for all reported home sales in this survey was $250,000.

Editor’s note: This article was produced in partnership with the Orlando Regional Realtor Association.