International real estate activity remains positive as foreign buyers continue to view the U.S. as a desirable place to own property. According to the National Association of REALTORS®’ 2016 Profile of International Activity, U.S. residential real estate sales to international clients accounted for $102 billion between April 2015 and March 2016.
Although comprising a small percentage of overall clientele, international buyers are a critical piece of the real estate market, functioning as the connection between realtors in local markets and the wide world of clients abroad. Typically, foreign buyers tend to acquire more expensive properties so, for the housing market here at home, it’s good news that the outlook for international activity remains positive.
California is one of five states that accounts for the 51% of total residential purchases by international clients. In effect, the trend of foreign real estate activity on a local level is of particular interest due to its direct and vital impact on the local real estate community within the domestic housing marketplace. According to a 2016 NAR survey, “Forty-four percent of respondents expect increased activity with international clients” which, in turn, is a “positive sign of the strength of the U.S. real estate market.” In order to ride this wave of international buying power, realtors who wish to expand their business abroad will need to fine tune their specialized knowledge of these particular buyers. NAR states, “Cultural affinity and knowledge of client preferences may also play an important role in nurturing relationships with international clients,” a small price to pay for a relationship with international buyers who continue to step up their purchases.
Please feel free to reach out to me. We can talk about the local housing market and what it means for you as a homebuyer.