Dennis Norman
By: Dennis Norman
According to the National Association of REALTORS(R) (NAR) a significant share of home purchases are made by people whose primary residence is outside the U.S. The just-released, 2009 NAR Profile of International Home Buying Activity survey stated “while the percentage of REALTORS(R) serving foreign buyers had decreased, international transactions still accounted for an estimated 9 percent of all REALTORS(R) business.”
In 2009, almost a fourth of all REALTORS(R) (23 percent) served international clients, down from 32 percent in 2007 and 26 percent in 2008. Approximately 12 percent of REALTORS(R) served an international client that closed on a real estate transaction.
Where do most of the international buyers come from?
- Europe 30.8 percent
- North America 27.5 percent
- Asia 25.2 percent
- Latin America 8.9 percent
What are the most popular locations in the U.S. for international buyers to purchase real estate?
- Florida – 23.0 percent of all purchases by international buyers
- California — 13.0 percent
- Texas – 10.7 percent
- Arizona – 7.1 percent
Here’s an interesting fact: in 2008 93 percent of all home buyers in the U.S. financed the purchase of their home with a mortgage. Conversely, almost half (46 percent) of international buyers pay cash when buying property in the U.S.
Why are foreign investors buying property in the U.S.?
- 33.9 percent for a vacation home for family and friends
- 23.5 percent both as a vacation home as well as an investment
- 20.8 percent we don’t know why
- 18.3 percent for residential rental property for investment
How do foreign buyers view U.S. Real Estate?
- 40 percent see the U.S. as a desirable location
- 31.8 percent see U.S. real estate as a profitable investment
- 19.9 percent see U.S. real estate as a secure investment
At a time when sales are sometimes hard to come buy agents may want to look at the international market as a niche to expand their business…particularly if you are located in one of the hot spots for foreign investment.
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