FROMTHE EXPERTS
WHERE TOBUY PROXIMITY TO HOME COUNTRY, THE PRESENCE OF RELATIVES AND FRIENDS, CONVIENENT AIR TRANSPORTATION, CLIMATE, SAFETY, AND ACCESS TO COLLEGES AND UNIVERSITIES ARE PARTCULARLY IMPORTANT TO INTERNATIONAL BUYERS.
THE HISTORICALLY STRONG U.S. HOUSING MARKET HAS TRADITIONALLY BEEN A GOOD INVESTMENT. THIS TREND IS EXPECTED TO CONTINUE. HERE IS WHAT THE EXPERTS ARE SAYING.
“With (this) income growth and low interest rates, we project a continued increase in homeownership rates within our community across non-traditional markets, particularly in the Southwest and Southeast region of the country. States like North Carolina, Alabama and Texas are seeing an increase in net migration of Asian Americans.” - Amy Kong, President of the Asian American Real Estate Association of America (Forbes.com, December 16, 2020)
To provide perspective, a sample of notable trends include the following:
Fifty-four percent of California’s foreign buyers are from Asia. The state provides geographical proximity and direct air travel to China, as well as a vibrant Asian American population which is 15%of the total population of California according to the Public Policy Institute of California.
“Nationwide, low interest rates will fuel homeownership demand in the first half of the year while employment gains will keep demand high in the second half of the year. Texas, home tomany Latinos and a greater number of newcomers, will see the highest number of newhomeowners.” -Gary Acosta, co-founder and CEOof theNational Association of Hispanic Real Estate Professionals (Forbes.com, December 16, 2020)
Indian buyers are split between California (17%), New Jersey (14%), and Texas (12%). While the number of homes purchased by Indians in the U.S. declined slightly, buyers spent a total in excess of $1 billion more year over year.
“We expect to see the housingmarket continue its bull run from this summer and autumnwell into 2021. Home value appreciationwill approach 9%or even 10%by July, before cooling somewhat down toward 7%appreciation.” -Jeff Tucker, Zillow senior economist (Forbes.com, December 16, 2020)
The number of homes in the U.S. purchased by Colombians more than doubled year over year – from 2,300 in 2019 to 5,500 in 2020. Florida is the overwhelming destination for Colombians – 78%of Colombian homebuyers in the U.S. purchased a home in Florida.
“The housingmarket was a spectacular surprise in 2020—and the positive trendwill continue this year. Home sales in 2021 are expected to rise by around 10%.” “A typical (U.S.) homeowner in 2020, just by being a homeowner, theywould have accumulated around $24,000 in housingwealth.” -Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of REALTORS ® (abcactionnews.com, February 17, 2021)
Buyers from Latin America favor states in close proximity such as Texas and Florida. The majority of international buyers in Florida, 35%, came from Latin America and the Caribbean.
“The (U.S.) housingmarket has proven to be very strong andwe expect it to continue to be a significant driver in the recovery of the overall economy over the next several years.” -Stuart Miller, Executive Chairman of Lennar Corporation (Lennar.com, December 16, 2020)
Canadians typically seek winter vacation destinations buying in warmer climates. Roughly 500,000 Canadian “snowbirds” flock to Florida each year, according to the Canadian Snowbird Association. Fifty percent of Canadians who purchased a home in the U.S. last year, bought in the state of Florida.
Forty-nine percent of Brazilian buyers purchased homes in Florida spending $1.4 billion USD. Texas is also popular where 12%of Brazilian buyers purchased a home.
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Data provided by the National Association of Realtors®
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