2015 profle of home buying by international clients
DESCRIPTION
These slides contain highlights from the 2015 Profile of International Home Buying Activity. They are for use in your own presentations or as another way to visualize the data. The Profile is based on a survey of REALTORS® about Existing Home Sales to resident and non-resident foreigners over the time period April 2014 through March 2015.TRANSCRIPT
2015 Profile of International Home Buying Activity of International Clients
For the Twelve Month Period Ending March 2015
National Association of REALTORS®
2015 Profile of Home Buying Activity of International Clients
NATIONAL ASSOCIATION OF REALTORS®
Research Division, June 2015
Lawrence Yun, Senior Vice President & Chief EconomistJed Smith, Managing Director, Quantitative Research
Gay Cororaton, Research Economist
Dollar Volume of Residential Sales to ForeignersA $104 Billion Market, 12 Months Ending March 2015
Two Types of International Clients
Total Number of Sales to Foreigners Decreased, 12 Months Ending March 2015
International Clients Purchase at Upper End of MarketMean Prices: All Buyers vs. International Clients
12 Months Ending March 2015
International Clients: Region of Origin
Origin of Purchaser by RegionFlorida and California
12 Months Ending March 2015
Origin of Purchaser by RegionTexas and Arizona
12 Months Ending March 2015
Average Home Purchase PriceBy Country of Purchaser12 Months Ending March 2015
Major Countries of Origin of BuyersPercentage of Total International Sales Measured in Unit Volume as of 12 Months
Ending March of Respective Year
China and India of Increasing ImportanceChinese Dollar Volume Substantial
12 Months Ending March 2015
2009/1 2010 2011 2012 2013 2014 2015Canada $8.9 $17.1 $13.0 $15.9 $11.8 $13.8 $11.2China $4.1 $11.2 $7.0 $12.0 $12.8 $22.0 $28.6India $6.0 $5.0 $5.1 $5.2 $3.9 $5.8 $7.9Mexico $4.1 $6.5 $4.2 $6.5 $3.6 $4.5 $4.9United Kingdom $6.6 $12.1 $6.5 $4.4 $4.2 $5.8 $3.8
Total International Sales $39 $66 $66 $82 $68 $92 $104Top 5, % share 76% 79% 54% 53% 53% 56% 54%*China includes PROC, HK, Taiwan/1 2009 estimate only captured Non-resident clients.Source: NAR
Estimate of Sales to International Clients from Top 5 Countries ( In Billion Dollars)
Top Four States of InterestFlorida, California, Texas, and Arizona
Why Do Foreigners Buy U.S. Residential Real Estate?12 Months Ending March 2015
Majority of Sales Are Cash12 Months Ending March of Respective Year
Value of Dollar Impacts International PurchasesHelps to Explain Decline in Sales 12 Months Ending March 2015
Price of U.S. Home, Based on Currency of BuyerA Rising Dollar Made U.S. Residential Property More Expensive
Average Purchase Price by Year12 Months Ending March of Respective Year
A Significant Number of REALTORS® Reported Having Foreign Clients
12 Months Ending March of Respective Year
How Do REALTORS® Obtain International Clients?12 Months Ending March 2015
A Specialized Market: 5 Percent Had More than 5 International Buyers12 Months Ending March of Respective Year
Not All Clients Buy: Reasons Given for Clients Not Purchasing
(Multiple Responses Permitted, 12 Months Ending March 2015)
How Has Number of Clients Changed in Past 5 Years?12 Months Ending March 2015
Conclusions
• International Clients: A Niche, Upscale Market– A Slowly Growing Market: Prices up– Greater Concentration of Sales in Upper Brackets– Sales to Both Resident and Non-Resident Foreigners.
• A Niche Market: Overall Share is 8 Percent of Existing Home Sales Dollar Volume.– Of Greater Importance in a Number of States—Florida, California, Arizona,
Texas.• Purchases for a Variety of Purposes: Investment, Vacation, Residential. • An Upscale Market
– Prices Significantly Above Median Price.• Requires Specialized Skills.
– Cultural Awareness.– Real Estate Practices on an International Basis