working with international home buyers in california presented by carmen hirciag senior research...
TRANSCRIPT
- Slide 1
- WORKING WITH INTERNATIONAL HOME BUYERS IN CALIFORNIA Presented by Carmen Hirciag Senior Research Analyst
- Slide 2
- THINK GLOBALLY What is going on in the world economy?
- Slide 3
- GLOBAL GDP EXPECTED TO IMPROVE
- Slide 4
- US GDP GROWTH HAS BEEN MODERATE ANNUAL PERCENT CHANGE, CHAIN-TYPE (2005) $ ANNUAL 2014 QUARTERLY SERIES: GDP SOURCE: US Dept. of Commerce, Bureau of Economic Analysis
- Slide 5
- GLOBAL UNEMPLOYMENT DECLINING
- Slide 6
- US & CA UNEMPLOYMENT RATES FALLING SLOWLY SERIES: Unemployment Rate SOURCE: US Bureau of Labor Statistics, CA Employment Development Division
- Slide 7
- US & CA LABOR FORCE PARTICIPATION RATE ALSO FALLING SLOWLY SERIES: Labor Force Participation Rate SOURCE: BLS, Data Buffet
- Slide 8
- GLOBAL INFLATION STEADY
- Slide 9
- US INFLATION IS HEALTHY SERIES: Consumer Price Index SOURCE: US Bureau of Labor Statistics
- Slide 10
- DOLLAR VALUE RISING SOURCE: Federal Reserve Board
- Slide 11
- FDI NET INFLOWS GROWING Source: The World Bank
- Slide 12
- FDI IN REAL ESTATE DOWN Source: Bureau of Economic Analysis
- Slide 13
- INTERNATIONAL HOME BUYERS IN THE U.S.
- Slide 14
- INTERNATIONAL PURCHASES ACCOUNT FOR 7% OF REAL ESTATE TRANSACTIONS IN U.S. Source: NAR 2014 Profile of International Home Buying Activity
- Slide 15
- COUNTRY OF ORIGIN OF INTERNATIONAL BUYERS Source: NAR 2014 Profile of International Home Buying Activity
- Slide 16
- INTERNATIONAL BUYERS PREFER FL Source: NAR 2014 Profile of International Home Buying Activity
- Slide 17
- CALIFORNIA HOUSING MARKET The Impact of International Home Buyers
- Slide 18
- SURVEY METHODOLOGY email to random sample of CA REALTORS in October- November 2014 466 respondents closed escrow within 12 months prior to October/November 2014 with an international client (one who is not a citizen or permanent resident of the US)
- Slide 19
- AGENTS GENERAL INTERNATIONAL BUSINESS
- Slide 20
- CLOSED TRANSACTIONS IN THE PAST 12 MONTHS DECLINED Q. How many real estate transactions did you close during the past 12 months? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 21
- SLIGHTLY MORE REALTORS CLOSED A TRANSACTION WITH AN INTERNATIONAL CLIENT IN 2014 Q: How many of those closed transactions involved an international client (one whose permanent residence is located outside the United States)? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 22
- # OF TRANSACTIONS CLOSED DECLINED Q: How many of those closed transactions involved an international client (one whose permanent residence is located outside the United States)? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 23
- LAST TRANSACTION
- Slide 24
- MAJORITY ARE BUYERS Q: Which side did you represent? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 25
- MAJORITY BOUGHT IN SOUTHERN CALIFORNIA Q: Where was the property in your closed transaction with an international client located? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 26
- TOP COUNTIES FOR INTERNATIONAL BUYERS CountyPercentage of Clients Los Angeles20% San Diego9.3% Riverside9.0% Orange8.7% Alameda7.9% Santa Clara5.4% Sacramento5.1% Contra Costa4.5% San Mateo3.7% San Francisco / San Bernardino2.8% Q: Where was the property in your closed transaction with an international client located? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 27
- MOST SALES NOT DISTRESSED Q: What type of purchase did your last international client(s) make? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 28
- MEDIAN LISTING PRICE UNCHANGED Q: What was the initial listing price of the property in your last closed transaction with an international clients? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 29
- MEDIAN FINAL SALE PRICE: $490,000 Q: What was the final sale price of the property in your last closed transaction with an international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 30
- MEDIAN FINAL SALE PRICE DROPPED 1.5% Q: What was the final sale price of the property in your last closed transaction with an international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 31
- SALE PRICE 2% LOWER THAN LIST PRICE Q: What was the final sale price of the property in your last closed transaction with an international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 32
- MAJORITY INTEND TO USE THE PROPERTY AS A PRIMARY RESIDENCE OR INVESTMENT Q: What was the intended use of the property in your last closed transaction with an international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 33
- MORE BUYERS PURCHASING PROPERTIES BELOW $500K FOR INVESTMENT SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 34
- MORE BOUGHT CONDOS/TOWNHOMES Q: What type of property did your last international client purchase/sell? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 35
- NEARLY HALF BOUGHT IN THE SUBURBS Q: Please select the category that best describes the location of the property in your last closed transaction with an international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 36
- MEDIAN SQUARE FEET: 1,900 Q: How many square feet did the property have? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 37
- MEDIAN SQUARE FEET 5% LOWER IN 2014 Q: How many square feet did the property have? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 38
- WHY BUY NOW? Q: What was your clients main reason for buying now? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 39
- MAJORITY ONLY CONSIDERED THE U.S. Q: In which cities outside the U.S. did your buyer consider purchasing real estate? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 40
- WHY THE UNITED STATES? Q: Why did your last international buyer choose to purchase in the U.S.? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 41
- MORE BUYERS PURCHASING PROPERTIES ABOVE $1M FOR INVESTMENT & BUSINESS SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 42
- FEWER FIRST TIME BUYERS Q: In your last closed transaction with an international client, was that the buyers first home purchased in the U.S.? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 43
- 96% OF INTERNATIONAL BUYERS OWN OTHER PROPERTIES Q: How many other properties does your last international buyer own? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 44
- AVERAGE NUMBER OF OTHER PROPERTIES OWNED DECLINED Q: How many other properties does your last international buyer own? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 45
- MORE CLIENTS HIRED PROFESSIONALS TO HELP FACILITATE TRANSACTION IN 2014 Q: Did your client hire any of the following professionals to help facilitate the transaction? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 46
- FEWER PROPERTIES FOUND OFF THE MLS Q: How did you find the property for your international buyer? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 47
- BUYERS INTEND TO KEEP THE PROPERTY LONGER Q: How many years does your last international buyer intend to keep the property? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 48
- MORE PROPERTIES MANAGED BY PROPERTY MANAGERS IN 2014 Q: Who will manage the property in your last closed transaction with an international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 49
- FINANCING
- Slide 50
- FEWER INTERNATIONAL BUYERS PAID CASH Q: How did your last international buyer pay for the property? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 51
- MORE BUYERS PURCHASING PROPERTIES BELOW $500K PAID CASH SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 52
- DOWN PAYMENT DECLINED Q: How much was the down payment for the home purchased (as a percentage of the sale price)? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 53
- DOWN PAYMENT CAME MOSTLY FROM PERSONAL SAVINGS Q: What was the source of the down payment in your last closed transaction with an international buyer? N=87 SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 54
- MORE ACQUIRED FIXED RATE LOANS IN 2014 Q: What type of loan did your last international buyer acquire? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 55
- MORE ACQUIRED 30-YEAR LOAN TERMS Q: What is the duration of the loan in your last closed transaction with an international buyer? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 56
- OBTAINING FINANCING IS LESS DIFFICULT Q: Please rate how easy or difficult it was for your last international buyer to obtain financing. (1=Very easy, 10=Very difficult) SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 57
- MAJORITY DIDNT HAVE PROBLEMS WITH TRANSACTION Q: What, if any, other problems did your last international buyer encounter with the transaction? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 58
- CLIENT / AGENT RELATIONSHIP
- Slide 59
- REFERRALS ARE BEST WAY TO FIND INTERNATIONAL BUYERS Q: How did you find your last international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 60
- INTERNATIONAL WEBSITES ARE GOOD WAY TO REACH FOREIGN BUYERS Q: How did you market yourself to international clients? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 61
- EMAIL IS MOST POPULAR FORM OF COMMUNICATION Q: How did you primarily communicate with your last international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 62
- MOST AGENTS & CLIENTS COMMUNICATE IN ENGLISH Q: In which language did you primarily communicate with your last international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 63
- MAJORITY AGENTS & CLIENTS COMMUNICATE VIA SMARTPHONE Q: Which technological device did you utilize the most in communicating with your last international client? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 64
- HALF FOUND PROPERTY IN 1 MONTH OR LESS Q: How many weeks did you spend looking for a property with your last international buyer? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 65
- FEWER WEEKS SPENT LOOKING FOR PROPERTY Q: How many weeks did you spend looking for a property with your last international buyer? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 66
- MAJORITY VIEWED < 9 PROPERTIES Q: How many different properties did you view with your last international buyer prior to the client making a purchase? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 67
- FEWER PROPERTIES VIEWED IN 2014 Q: How many different properties did you view with your last international buyer prior to the client making a purchase? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 68
- 70% MADE MULTIPLE OFFERS Q: How many offers did your last international buyer make on other properties (in addition to the one purchased)? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 69
- FEWER OFFERS MADE IN 2014 Q: How many offers did your last international buyer make on other properties (in addition to the one purchased)? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 70
- WHO ARE INTERNATIONAL BUYERS? Demographics
- Slide 71
- TYPICAL INTERNATIONAL BUYER 81% Married 81% College Educated 74% Male 47% Asian 43 Years Old $200K Median Income
- Slide 72
- MANY INTERNATIONAL CLIENTS FROM CHINA Q: Please tell us about your last closed transaction with an international client. What is your clients country of permanent residence? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 73
- CHINESE REMAINS TOP LANGUAGE AMONG INTERNATIONAL BUYERS Q: What is your last international clients primary language? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 74
- MAJORITY ARE INDIVIDUALS Q: Was your last international client a(n): SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 75
- MAJORITY OF INDIVIDUAL BUYERS ARE MALE Q: What is your (last international) clients gender? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 76
- INTERNATIONAL BUYERS ARE GETTING YOUNGER Q: What was your (last international) clients age at the time the transaction closed? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 77
- MOST INTERNATIONAL BUYERS ARE MARRIED Q: What was your (last international) clients marital status at the time the transaction closed? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 78
- > 8/10 INTERNATIONAL BUYERS ARE COLLEGE EDUCATED Q: What is the highest level of education your (last international) client had completed at the time the transaction closed? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 79
- OCCUPATION OF INTERNATIONAL BUYERS Q: What does your last international client do for a living? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 80
- NEARLY 1/2 INTERNATIONAL BUYERS ARE ASIAN Q: How would you describe your (last international) clients ethnic background? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 81
- ANNUAL INCOME/REVENUE Q: What is your (last international) clients annual income/revenue? SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 82
- Slide 83
- Slide 84
- STAY CONNECTED WITH RESEARCH CARResearchGroup CARResearchInfo On.car.org/CARResearch Housingmatters.car.org
- Slide 85
- Slide 86
- Understanding California Home Sellers Understanding California Home Sellers Thursday, February 26, 2014 2:00 PM - 3:00 PM To register: WWW. CAR.ORG/MARKETDATA/VIDEOS WWW. CAR.ORG/MARKETDATA/VIDEOS JOIN US FOR OUR NEXT WEBINAR
- Slide 87
- QUESTIONS? Thank You! [email protected]