What is the profile of the international home purchase activity in the US?
About a year ago I mentioned some of the characteristics of the types of properties foreign buyers were buying, depending on where they are from. This blog here is more general in nature and shows how much, globally, each country participated in the buying binge in the US.
An image is worth 1000 words... the National Association of Realtors put out a study and infographic that says it all, entitled: Where are most international buyers from?
Please check out the NAR's 2016 International Profile.
.. which translates in the following figures:
Thank you for reading,
Francis
Silicon Valley real estate specialist
Price your property
Detailed, local trends etc...
Current mortgage rates
Sound Real Estate information for the mid-peninsula of San Francisco: the Silicon Valley.
Coldwell Banker Realty - Los Altos -
Realtor - CalRE# 00896319
Showing posts with label foreign investments. Show all posts
Showing posts with label foreign investments. Show all posts
Friday, July 28, 2017
Thursday, July 14, 2016
Foreign buyers - California - US
The number of sales to foreign buyers rose once again over
the past year, although international buyers are shifting their preferences from
luxury homes to less-pricey properties.
It is interesting to note that California is home to about 25% of all of the foreign-born population of the US. Florida has only 9% of the foreign-born population of the US, as shown on the graph below:
Thank you for reading,
Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
A worthy local non-profit to remember: Community Services Agency in Mountain View.
NAR (National Association or Realtors) economists think the
change in the price of homes international buyers are after may be due to
overall higher home prices, along with a stronger U.S. dollar, which both cost
foreign buyers more these days.
“Weaker economic growth throughout the world, devalued
foreign currencies and financial market turbulence” all had an impact on
foreign buyers over the past year, said Lawrence Yun, NAR’s chief
economist. “While these obstacles led to a cool down in sales from
nonresident foreign buyers, the purchases by recent immigrant foreigners rose,
resulting in the overall sales dollar volume still being the second highest
since 2009.”
Foreign buyers purchased $102.6 billion of residential
property in the U.S. between April 2015 and March 2016, according to NAR’s
report. The number of properties purchased rose 2.8 percent to 214,885. The value of
homes bought by foreigners was typically higher than the median price of all
U.S. homes.
Experts say a slight drop in dollar volume is due to the
types of properties purchased, and the locations of those properties. There are signs that foreign
buyers have begun looking beyond higher-priced markets like San Francisco and
New York to purchase properties in smaller, less-expensive cities in the
Southeast and Midwest.
Chinese purchasers continued to outpace all others, with
their dollar volume exceeding the total of the next four ranked countries
combined. Their dollar volume of sales, at $27.3 billion, was three times as
much as Canadian buyers, who were ranked second. Chinese buyers also bought the
most expensive homes at a median price of $542,084.
Five states accounted for half of foreign buyer purchases,
according to the NAR report: Florida, (22 percent), California (15 percent),
Texas (10 percent), Arizona and New York (each at 4 percent).
Detailed, local trends etc...
Current mortgage rates
A worthy local non-profit to remember: Community Services Agency in Mountain View.
Thursday, December 17, 2015
Offshore Buyers Continue to Invest in Bay Area Real Estate
From our Coldwell Banker desk:
2015 was another very strong year for foreign
investment in U.S. real estate, especially here in the Bay Area and
particularly from Asian buyers.
The dollar volume of all foreign investment in the U.S.
reached $104 billion for the 12 months ended March 2015, up 13 percent from the
same period a year ago, according to the National Association of REALTORS®.
More than half of that investment went to California and three other states –
Florida, Arizona and Texas.
No one knows for sure exactly how much foreign
investment there is in the Bay Area housing market, but anecdotal evidence from
our agents and managers in the field tell me it is substantial. And it's
probably not surprising, considering the fact that the Bay Area has long been
one of the most sought after housing markets for Chinese investors
and other offshore buyers.
International investors are attracted by the strength
of our local economy, particularly the tech sector in Silicon Valley. They
also favor the stability of the U.S. political and financial systems, our
strong schools and world-class universities like Stanford and Cal, solid
appreciation on homes in the Bay Area, and the relatively affordable
prices - yes "affordable" - compared to many other major cities
around the world.
If you have any doubt about just how fast Chinese and
other Asian investment is growing in the U.S., consider a recent NAR study
that found Chinese buyers were the number one international investors in
U.S. real estate over the past year with $28.6 billion in sales volume,
nearly three times the number two country, Canada. As recently as six years
ago, Canadian investment in the U.S. market was more than double China's, which
also ranked behind India and the U.K. and was at the same level as Mexico.
In recent years, Coldwell Banker has deployed a very
targeted marketing program to reach Asian consumers in a variety of media
outlets, both print and digital. We are reaching out to buyers and marketing
properties on many of the biggest Asian websites and publications. In addition,
our strong international network of offices and agents – the most of any U.S.
brokerage – has helped us attract more offshore buyers. Given the interest in
the Bay Area housing market from Asian investors and others overseas, I don't
see that trend changing anytime soon.
Thank you for reading!
Francis
Detailed, local trends etc...
Current mortgage rates
A worthy local non-profit to remember: Community Services Agency in Mountain View.
Tuesday, December 30, 2014
Foreign investments in the U.S. real estate market.
Foreign investment in the US real estate market.
Year-in year-out Realtors in the Bay Area deal quite a bit with
foreign buyers. It is interesting to keep some perspective on this
phenomenon at the national level.
From March 2013 to March 2014, foreign purchases in US real
estate increased 26% from the year before, to a total of $92.2 billion
(National Association of Realtors Profile of International Home Buying
Activity).
4 states accounted for 55% of the total: Florida,
California, Arizona and Texas.
Nearly 60% of reported international transactions were all cash,
compared to just one-third of domestic home purchases. - Still 1/3 is an impressive number!
54% of all international transactions last year came from Canada,
China, Mexico, India and the U.K.
Clearly, the United States remain a destination of choice for investors for its stability, and future prospects.
Separately, but still relevant to this subject, it is good to note that the foreign-born population by state looks like this:
- California: 25.4%
- New York: 10.8%
- Texas: 10.4%
- Florida: 9.2%
- the rest (~44% ) is divided between the other states.
Clearly, the United States remain a destination of choice for investors for its stability, and future prospects.
Separately, but still relevant to this subject, it is good to note that the foreign-born population by state looks like this:
- California: 25.4%
- New York: 10.8%
- Texas: 10.4%
- Florida: 9.2%
- the rest (~44% ) is divided between the other states.
Do you have an input on the subject? Please let me know.!
Thanks for reading.
Francis
Subscribe to:
Posts (Atom)