International Buyers: Suburban Areas Most Sought
In the business of real estate, and especially luxury real estate, it is crucial to have global exposure for international clientele. Well, this is a look at recorded international buyer activity in the past year, ending in March 2013.
A fair percentage of residential home purchases are made by those living outside (or whose primary residence is) outside the US. These latest research figures by REALTOR.org show that the majority of foreign buyers are purchasing single-family homes. These homes are for residential purposes and/or vacation use. Some key factors for location seem to be employment, family, and investment opportunity, among others.
International buyers made up roughly 6.3% percent of recorded home sales in the US from March 2012 to March 2013. This figure accounts for $68.2 billion in sales, out of the $1 trillion in total recorded sales over the same amount of time.
The main international buying pool remains Canada, China, India, Mexico, and the UK. Although, a large portion of international buyers come from various countries around the world, which highlights the importance of global exposure.
Research figures show that the top five locations in which international purchasers staked flags were Florida, California, Arizona, Texas, and New York. These statistics represent number of buyers, as opposed to sales amounts. We also see that 50% of these purchases are in suburban areas, while 25% are city/urban, 14% are resort, and 11% are small town rural areas.
Also intriguing are the statistics that the majority of these international buyers are all cash. How do these figures affect your approach to the market, and/or your business? Do you see this kind of activity in your market?
Feel free to let us know your answers, thoughts, or questions in the comment section below.
Photo Courtesy of epSos.de’s Flickr