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After a dip in 2009, international activity in the United States picked up last year, with more agents reporting contacts with foreign shoppers.
From April, 2009, to March, 2010, 28 percent of agents reported contact with international buyers, compared to 23 percent in 2009, the National Association of Realtors’ annual survey of Realtors found. More importantly, 18 percent reported actual sales involving an international client, compared to 12 percent in 2009.
While still down from the 32 percent who reported dealings with foreign clients in 2007, the numbers, if nothing else, indicate that the U.S. remains a strong market for the global real estate community.
International buyers purchased $66 billion worth of property, or about 7 percent of the market, NAR estimates.
“A large majority of Realtors report the changes in value to the U.S. dollar have had a strong impact on the international real estate business,” NAR President Vicki Cox Golder said in a statement. “In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value.”
Canada remains the largest supplier of international buyers, but Mexico has moved into the second position with 10 percent of the buyers, replacing the U.K., which fell from 10.5 percent in 2009 to nine percent in 2010.
The activity remains focused on four states--Florida, California, Arizona and Texas—which accounted for 53 percent of the activity. But the median price paid by foreign buyers plummeted, from $247,000 to $219,000, suggesting that international buyers were bargain hunting in markets with depressed values.
But there is no denying the buying power of the international buyers. Fifty-five percent of the buyers paid all cash. And 16 percent of the purchases were for more than $500,000.
NAR also found that a few agents are handling the bulk of the international business. Of the Realtors with international clients, only 10 percent reported having six or more foreign clients, while only five percent reported that international business accounted for more than 50 percent of their transactions.
The full report can be found here.
