In our International Buyer Trends report for 2020, ListGlobally presents the latest trends in property searches in the United States, based on data from our proprietary business tools, results from ListGlobally survey questionnaire and validation by cross-referencing trusted sources.
This article discusses a few topics of interest from the findings. Be sure to read the complete report by downloading the document at the end of this post.
Top 10 Foreign Buyers
International lead activity did flux from month to month, as a result of the pandemic, but overall, foreign inquiries stayed strong.
The median price that foreign buyers spent on property in the US was $314,600K, up from the $274,600 median price for 2019.
The purchase activity of China is showing a decrease but with the new Joe Biden presidency, there may be friendlier relations with foreign investors from China in the coming years. Biden may be viewed by Chinese investors as a more rational leader who is interested in economic growth and stability than they had experienced under the Trump administration.
Foreign buyer interest in regions of the U.S.
Our data shows the top regions of interest for property in the United States. With relatively affordable U.S. housing prices, purchasing investment property in America is becoming more and more common.
Further details can be found in the report, but for now, let’s take a closer look at the top regions of interest:
Here is a list of some other reasons that Florida is a prime purchase location for investors:
- Population Growth - over the next two years Florida’s population is expected to grow by more than 700,000 residents
- Job Market- The proactive, business-friendly government in Florida is an expert at attracting new high-wage jobs for workers who can compete on a global scale
- Historic Price Changes & Affordability - Over the last five years, the price of a home in Florida has grown by more than 50%, while over the last quarter prices have increased by 1.25%. FHA publishes its House Price Index
- Quality of Life - The state offers an almost ideal work-life balance with great job opportunities and near-perfect weather, culture, and recreation.
The forecast for the California real estate market is an increase in home prices – as high as 10.6% for the first three quarters of 2021.
Low interest rates give buyers purchasing power and home prices a boost. Buyer demand will remain robust and we already see that California’s median price has been bumped to above $700,000 as reported by the California Association of Realtors.
California’s realtors and landlords saw a big rebound in June with the housing markets in Los Angeles, San Francisco, San Jose, San Diego, and Sacramento seeing the biggest recovery.
Buyers have made a swift comeback since the reopening of the economy this summer, leading to a busy home-shopping season, contrary to this time of year usually showing a slow-down in real estate transactions.
Current trends show that the New York housing market continues to be active in cold weather with sales higher than normal levels, with both sales and prices increasing by double digits as compared to last year.
The closed sales increased by 16.6% from 12,853 units in October 2019 to 14,981, while pending sales skyrocketed by a 38.8% increase from October of last year, according to the housing report released by the New York State Association of REALTORS®.
- Homes for sale in New York have a median listing price of $875K
- Most homes for sale in New York stay on the market for 135 days and receive 3 offers
- The median sale price was $670K
Texas single-family sales are projected to maintain an increase by 8.4% in 2021.
Here are some other aspects that attract buyers to Texas:
- Affordable House Prices - the median Texas investment property price is $323,619 which is lower than the US median property price, of $325,200.
- High Appreciation - Texas house prices are relatively inexpensive on the national level, and they are expected to increase. Property in the 2020 Texas housing market rose by more than the US average rate. Many of the best cities in Texas, such as the Dallas housing market, have an appreciation rate that is well above the state’s estimated rate.
- Profitable traditional investments - The Texas real estate market is excellent when it comes to traditional investing. One of the reasons why this is the case is its economic success - the state lives up to its “everything’s bigger in Texas” motto. The state’s job market is very diversified, with the largest industries including construction, schooling, restaurants and school services, software publishing, and energy sectors.
Thriving Luxury Property Market
While the rest of the world is speculating on how markets will recover in 2021, it appears that luxury markets are doing well in these times and are expected to continue to do so, and our findings support this.
You know the saying – ‘the rich get richer’ and statistics show that the wealthy have experienced a net income increase during the pandemic, despite its recessionary effect. UBS and Price Waterhouse Coopers reported that the wealth of the world's 500 richest people has risen a collective $813 billion in 2020.
This is partly due to a surging financial market and an appreciation of luxury real estate values – up to three times higher than the median price of a house or condominium in its region.
Since this summer, there has been an explosion in purchasing activity with many luxury buyers who are looking for a property that is ready for immediate occupancy. Some analysts attribute the spike in high-end property sales to the rich fleeing cities where COVID-19 is rampant. But the limited inventory of move-in ready, luxury homes has forced prices up. High-end homeowners, who for years have rented, are putting them on the market - knowing that they can command top dollar from affluent clients.
Luxury properties, which typically have more land and privacy, are a hot commodity right now and are selling quickly - and for more money.
2020 Changed Buyer Behaviour and Interests
We've seen a shift in the habits of buyers and sellers, including how COVID redefined the work-home balance. Sales of expensive homes and high-end communities have been booming since May when it became evident that the pandemic would disrupt our lifestyles indefinitely. Value investors are snapping up multimillion-dollar homes as the pandemic continues to fuel a work-from-home lifestyle that no longer ties people to the office five days a week.
This pandemic-induced ‘remote work phenomenon’ is stimulating the activity in luxury property sales. For those who can afford luxury home purchases, the trend isn't expected to slow, in large part because remote work and schooling look like they are here to stay. Many luxury home buyers are looking for space for multiple home offices, so that their children can have their own dedicated remote learning room, rather than having to Zoom from their bedrooms or the kitchen table.
Real estate agents across the world are reporting that highly-liquid investors continued their purchasing activity during the crisis, inquiring about new development properties, resorts and luxury homes; particularly those where only a few units remain and developers are willing to sell at a discount.
We talked to our clients and they agree that the pandemic has pushed the global industry to embrace a variety of technology tools. Buyers and sellers say they'd prefer to work with real estate agents who use technology and virtual services in order to adhere to social distancing guidelines. More insights can be found in the report.
Learn more about United States international buyer trends in our report, including:
- Top 10 Countries
- Quick Stats
- Business with international clients
- Foreign leads by price range
- How the Coronavirus affected the market
The full ListGlobally year in review report can be found here.
We wish you a successful 2021 with continued and increased opportunities for foreign investment!
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