Friday, April 18, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Foreign homebuyers continue to identify U.S. as profitable investment

WASHINGTON, D.C. — International home sales in the U.S. declined in the past year, but are at their second highest level in recent years and are over 6 percent of total existing-home sales in value. According to the National Association of Realtors 2013 Profile of International Home Buying Activity, interest in U.S. properties continues to grow, signaling that America continues to be regarded by international buyers as a great place to own property.

The survey, which asked Realtors to report their international business activity within the U.S. for the 12 months ending March 2013, showed that total international sales were $68.2 billion, down approximately $14 billion from the previous year. The decline is attributed to a number of temporary factors, including economic slowdowns in a number of major foreign economies, tighter U.S. credit standards and unfavorable exchange rates. Of total international transactions, $34.8 billion (51 percent) were attributed to foreign buyers with permanent residences outside the U.S. and $33.4 billion (49 percent) were attributed to buyers who are recent immigrants or temporary visa holders residing for more than six months in the U.S.

“Foreign buyers are experiencing hurdles not only abroad, but also here in the U.S. when it comes to purchasing property,” said NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park. “Difficult economic conditions, particularly in Europe, have impacted foreign buyers, but several factors in the U.S. have also affected their purchasing power here. Tight credit standards have made financing challenging for immigrants, and low housing inventories have made finding a house difficult. However, none of these factors appear to be permanent.”

Foreign buyers continue to have a substantial interest in U.S. properties. Over a five year time frame more than 70 percent of Realtors reported a constant or increasing level in the number of international clients contacting them.

“Realtors provide international buyers with a significant advantage when purchasing property in the U.S. Realtors who have earned NAR’s Certified International Property Specialist designation have received specialized training and are well prepared to service the international market,” said Thomas.

Twenty-seven percent of Realtors reported having worked with international clients this year. The most important factors influencing international clients’ purchases reported by Realtors were that the U.S. is viewed as a desirable location and that the real estate market is regarded as a profitable investment.

Realtors reported purchases from 68 countries, but five have historically accounted for the bulk of purchases; Canada (23 percent), China (12 percent), Mexico (8 percent), India (5 percent) and the United Kingdom (5 percent). These five countries accounted for approximately 53 percent of transactions, with Canada and China the fastest growing sources over the years.

Canadian buyers were reported to purchase properties with a median price of $183,000, with the majority purchased in Florida, Arizona and California. Chinese buyers tended to purchase property in the upper price ranges with a median price of $425,000 and typically in California. Sixty-two percent of Mexican buyers purchased property in California and Texas, with a median price of $156,250.

International buyers tend to cluster in specific locations based on countries of origin, as well as several other factors. “Many factors influence foreign buyers’ decisions on where to purchase in the U.S., but the most important are proximity to home country, presence of relatives and friends, availability of job and education opportunities, and the climate,” said Thomas. “International buyers also differ on the type of desired property. Some are looking for trophy properties while others are interested in modest vacation homes.”

Five states made up 61 percent of reported purchases; Florida (23 percent), California (17 percent), Arizona (9 percent), Texas (9 percent) and New York (3 percent). About half of foreign buyers preferred to purchase in a suburban area, while a quarter preferred a more central city/urban area. A majority purchased a detached single-family home and 63 percent used all-cash. Based on the reported international transactions, the mean and median prices of purchases were higher when compared to purchase prices of domestic buyers. For the 12 months ending March 2013 the median international home price was $275,862 and for domestic buyers it was $179,867. The types of homes purchased by international buyers frequently tended to be different from the types of homes purchased by domestic U.S. buyers. International buyers are more likely to be substantially wealthier and looking for a property in a specialized niche.

 

LEAVE A COMMENT

Discussion | No comments

.

News

Goodbye LUPPU, hello LRPU

By Chris Daley | From Page: A1, 4 Comments

 
Past due state taxes bring arrest

By Cole Mayer | From Page: A1, 8 Comments

 
Sanford trial: Prosecution, defense rest

By Cole Mayer | From Page: A1 | Gallery

Woman, dog back from Oso

By Wendy Schultz | From Page: A1, 9 Comments | Gallery

 
 
 
DA candidate to remain on ballot

By Dawn Hodson | From Page: A9

Dog talk with Uncle Matty: Benji and the Bickersons

By Matthew Margolis | From Page: A10

 
CPCSD seat unfilled

By Dawn Hodson | From Page: A14, 1 Comment

Lew Uhler backs Ranalli

By News Release | From Page: A14, 6 Comments

 
.

Letters

District 4 candidate

By Letters to the Editor | From Page: A7, 19 Comments

 
Open meetings

By Letters to the Editor | From Page: A7, 6 Comments

Volunteers and homeless camps

By Letters to the Editor | From Page: A7, 76 Comments

 
Bicycle events and traffic control

By Letters to the Editor | From Page: A7, 6 Comments

Evacuation

By Letters to the Editor | From Page: A7, 6 Comments

 
.

Sports

Savannah Stephens can swing the bat

By Jerry Heinzer | From Page: A11 | Gallery

 
King of the West roars into Placerville

By Gary Thomas | From Page: A11

First and goal: Bunt etiquette

By Mike Bush | From Page: A11

 
Oak Ridge suffers tough 2-1 setback

By Mike Bush | From Page: A11

Jennings wins national title

By Democrat Staff | From Page: A11, 1 Comment | Gallery

 
Roundup: April 17, 2014

By Democrat Staff | From Page: A12 | Gallery

.

Prospecting

Plantastic sale this Saturday

By Dawn Hodson | From Page: B1 | Gallery

 
Spring art brightens government center

By Democrat Staff | From Page: B2 | Gallery

Things to do: April 18, 2014

By Democrat Calendar | From Page: B2

 
Time out: A grand time at Grand China

By Earle Camembert | From Page: B3 | Gallery

Temple Kol Shalom hosts Passover Seder

By News Release | From Page: B3

 
Student art featured for Third Saturday

By News Release | From Page: B3

Promenade in high style

By Historic Old Sacramento | From Page: B4

 
Sac State Presents ‘Gypsy’

By California State Unversity, Sacramento | From Page: B4

Friday nights are engaging at the de Young

By Fine Arts | From Page: B5

 
Hats On For the Kids raises money for children

By Democrat Staff | From Page: B6

See what is inside the vault

By Center For Sacramento History | From Page: B6

 
Eggstravaganza

By Fairytale Town | From Page: B6

Gallery tips a hat to Dr. Seuss

By Democrat Staff | From Page: B7

 
Museum presents ‘Diesel Days’

By California State Railroad Museum | From Page: B7

Engagement: Adam Frega and Wednesday Bienusa

By Democrat Staff | From Page: B8

 
Duty: Air Force Airman Brian Polk

By Democrat Staff | From Page: B8

Cal Stage presents a season of challenging productions

By California Stage | From Page: B8

 
Duty: Army Pfc. Kyle W. Beasy

By Democrat Staff | From Page: B8

KVIE calls for artists

By Kvie | From Page: B9

 
A Couple of Blaguards tell tales

By Harris Center for the Arts | From Page: B9

America’s ClayFest II celebrates a rich history

By Blue Line Arts | From Page: B14

 
Fine Arts Museums feature two shows

By Fine Arts | From Page: B15

See wildflowers on train ride

By Railtown | From Page: B15

 
Easter at Northstar is family friendly

By Northstar California | From Page: B15

.

Essentials

Crime Log: March 28-30

By Cole Mayer | From Page: A2

 
.

Obituaries

Arthur W. Cornell

By Contributor | From Page: A2

 
Frank “Bud” Kraus Jr.

By Contributor | From Page: A2

Roy Cluness Chaix

By Contributor | From Page: A2

 
Frederick Wilbur Heymann

By Contributor | From Page: A2

.

Real Estate

Faster sales with spring staging

By Ken Calhoon | From Page: HS4

 
Coldwell Banker outsells the competition

Press Release | From Page: HS7

Handsome Redmond suits modern families

Press Release | From Page: HS11

 
Growing your own

By Marni Jameson | From Page: HS14

 
Fraud workshop scheduled

Press Release | From Page: HS21

HCD launches assistance program

Press Release | From Page: HS22, 1 Comment

 
EZ Mortgages Inc. opens Placerville office

By News Release | From Page: HS22, 2 Comments

.

Comics

Speed Bump

By Contributor | From Page: A13

 
Working It Out

By Contributor | From Page: A13

Shoe

By Contributor | From Page: A13

 
Rubes

By Contributor | From Page: A13

Tundra

By Contributor | From Page: A13

 
TV Listings

By Contributor | From Page: A13

Sudoku

By Contributor | From Page: A13

 
New York Times Crossword

By Contributor | From Page: A14

Horoscope, Sunday, April 20, 2014

By Contributor | From Page: A14

 
Horoscope, Saturday, April 19, 2014

By Contributor | From Page: A14

Horoscope, Friday, April 18, 2104

By Contributor | From Page: A14

 
.

Home Source

Faster sales with spring staging

By Ken Calhoon | From Page: HS4

Coldwell Banker outsells the competition

Press Release | From Page: HS7

Handsome Redmond suits modern families

Press Release | From Page: HS11

Growing your own

By Marni Jameson | From Page: HS14

Fraud workshop scheduled

Press Release | From Page: HS21

HCD launches assistance program

Press Release | From Page: HS22, 1 Comment

EZ Mortgages Inc. opens Placerville office

By News Release | From Page: HS22, 2 Comments