WORKING WITH INTERNATIONAL HOME BUYERS IN CALIFORNIA Presented by Carmen Hirciag Senior Research...
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- Slide 1
- WORKING WITH INTERNATIONAL HOME BUYERS IN CALIFORNIA Presented
by Carmen Hirciag Senior Research Analyst
- Slide 2
- THINK GLOBALLY What is going on in the world economy?
- Slide 3
- GLOBAL GDP EXPECTED TO IMPROVE
- Slide 4
- US GDP GROWTH HAS BEEN MODERATE ANNUAL PERCENT CHANGE,
CHAIN-TYPE (2005) $ ANNUAL 2014 QUARTERLY SERIES: GDP SOURCE: US
Dept. of Commerce, Bureau of Economic Analysis
- Slide 5
- GLOBAL UNEMPLOYMENT DECLINING
- Slide 6
- US & CA UNEMPLOYMENT RATES FALLING SLOWLY SERIES:
Unemployment Rate SOURCE: US Bureau of Labor Statistics, CA
Employment Development Division
- Slide 7
- US & CA LABOR FORCE PARTICIPATION RATE ALSO FALLING SLOWLY
SERIES: Labor Force Participation Rate SOURCE: BLS, Data
Buffet
- Slide 8
- GLOBAL INFLATION STEADY
- Slide 9
- US INFLATION IS HEALTHY SERIES: Consumer Price Index SOURCE: US
Bureau of Labor Statistics
- Slide 10
- DOLLAR VALUE RISING SOURCE: Federal Reserve Board
- Slide 11
- FDI NET INFLOWS GROWING Source: The World Bank
- Slide 12
- FDI IN REAL ESTATE DOWN Source: Bureau of Economic
Analysis
- Slide 13
- INTERNATIONAL HOME BUYERS IN THE U.S.
- Slide 14
- INTERNATIONAL PURCHASES ACCOUNT FOR 7% OF REAL ESTATE
TRANSACTIONS IN U.S. Source: NAR 2014 Profile of International Home
Buying Activity
- Slide 15
- COUNTRY OF ORIGIN OF INTERNATIONAL BUYERS Source: NAR 2014
Profile of International Home Buying Activity
- Slide 16
- INTERNATIONAL BUYERS PREFER FL Source: NAR 2014 Profile of
International Home Buying Activity
- Slide 17
- CALIFORNIA HOUSING MARKET The Impact of International Home
Buyers
- Slide 18
- SURVEY METHODOLOGY email to random sample of CA REALTORS in
October- November 2014 466 respondents closed escrow within 12
months prior to October/November 2014 with an international client
(one who is not a citizen or permanent resident of the US)
- Slide 19
- AGENTS GENERAL INTERNATIONAL BUSINESS
- Slide 20
- CLOSED TRANSACTIONS IN THE PAST 12 MONTHS DECLINED Q. How many
real estate transactions did you close during the past 12 months?
SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA
ASSOCIATION OF REALTORS
- Slide 21
- SLIGHTLY MORE REALTORS CLOSED A TRANSACTION WITH AN
INTERNATIONAL CLIENT IN 2014 Q: How many of those closed
transactions involved an international client (one whose permanent
residence is located outside the United States)? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 22
- # OF TRANSACTIONS CLOSED DECLINED Q: How many of those closed
transactions involved an international client (one whose permanent
residence is located outside the United States)? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 23
- LAST TRANSACTION
- Slide 24
- MAJORITY ARE BUYERS Q: Which side did you represent? SERIES:
2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION
OF REALTORS
- Slide 25
- MAJORITY BOUGHT IN SOUTHERN CALIFORNIA Q: Where was the
property in your closed transaction with an international client
located? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 26
- TOP COUNTIES FOR INTERNATIONAL BUYERS CountyPercentage of
Clients Los Angeles20% San Diego9.3% Riverside9.0% Orange8.7%
Alameda7.9% Santa Clara5.4% Sacramento5.1% Contra Costa4.5% San
Mateo3.7% San Francisco / San Bernardino2.8% Q: Where was the
property in your closed transaction with an international client
located? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 27
- MOST SALES NOT DISTRESSED Q: What type of purchase did your
last international client(s) make? SERIES: 2014 International Home
Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 28
- MEDIAN LISTING PRICE UNCHANGED Q: What was the initial listing
price of the property in your last closed transaction with an
international clients? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 29
- MEDIAN FINAL SALE PRICE: $490,000 Q: What was the final sale
price of the property in your last closed transaction with an
international client? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 30
- MEDIAN FINAL SALE PRICE DROPPED 1.5% Q: What was the final sale
price of the property in your last closed transaction with an
international client? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 31
- SALE PRICE 2% LOWER THAN LIST PRICE Q: What was the final sale
price of the property in your last closed transaction with an
international client? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 32
- MAJORITY INTEND TO USE THE PROPERTY AS A PRIMARY RESIDENCE OR
INVESTMENT Q: What was the intended use of the property in your
last closed transaction with an international client? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 33
- MORE BUYERS PURCHASING PROPERTIES BELOW $500K FOR INVESTMENT
SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA
ASSOCIATION OF REALTORS
- Slide 34
- MORE BOUGHT CONDOS/TOWNHOMES Q: What type of property did your
last international client purchase/sell? SERIES: 2014 International
Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 35
- NEARLY HALF BOUGHT IN THE SUBURBS Q: Please select the category
that best describes the location of the property in your last
closed transaction with an international client? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 36
- MEDIAN SQUARE FEET: 1,900 Q: How many square feet did the
property have? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 37
- MEDIAN SQUARE FEET 5% LOWER IN 2014 Q: How many square feet did
the property have? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 38
- WHY BUY NOW? Q: What was your clients main reason for buying
now? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 39
- MAJORITY ONLY CONSIDERED THE U.S. Q: In which cities outside
the U.S. did your buyer consider purchasing real estate? SERIES:
2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION
OF REALTORS
- Slide 40
- WHY THE UNITED STATES? Q: Why did your last international buyer
choose to purchase in the U.S.? SERIES: 2014 International Home
Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 41
- MORE BUYERS PURCHASING PROPERTIES ABOVE $1M FOR INVESTMENT
& BUSINESS SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 42
- FEWER FIRST TIME BUYERS Q: In your last closed transaction with
an international client, was that the buyers first home purchased
in the U.S.? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 43
- 96% OF INTERNATIONAL BUYERS OWN OTHER PROPERTIES Q: How many
other properties does your last international buyer own? SERIES:
2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION
OF REALTORS
- Slide 44
- AVERAGE NUMBER OF OTHER PROPERTIES OWNED DECLINED Q: How many
other properties does your last international buyer own? SERIES:
2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION
OF REALTORS
- Slide 45
- MORE CLIENTS HIRED PROFESSIONALS TO HELP FACILITATE TRANSACTION
IN 2014 Q: Did your client hire any of the following professionals
to help facilitate the transaction? SERIES: 2014 International Home
Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 46
- FEWER PROPERTIES FOUND OFF THE MLS Q: How did you find the
property for your international buyer? SERIES: 2014 International
Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 47
- BUYERS INTEND TO KEEP THE PROPERTY LONGER Q: How many years
does your last international buyer intend to keep the property?
SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA
ASSOCIATION OF REALTORS
- Slide 48
- MORE PROPERTIES MANAGED BY PROPERTY MANAGERS IN 2014 Q: Who
will manage the property in your last closed transaction with an
international client? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 49
- FINANCING
- Slide 50
- FEWER INTERNATIONAL BUYERS PAID CASH Q: How did your last
international buyer pay for the property? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 51
- MORE BUYERS PURCHASING PROPERTIES BELOW $500K PAID CASH SERIES:
2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION
OF REALTORS
- Slide 52
- DOWN PAYMENT DECLINED Q: How much was the down payment for the
home purchased (as a percentage of the sale price)? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 53
- DOWN PAYMENT CAME MOSTLY FROM PERSONAL SAVINGS Q: What was the
source of the down payment in your last closed transaction with an
international buyer? N=87 SERIES: 2014 International Home Buyer
Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 54
- MORE ACQUIRED FIXED RATE LOANS IN 2014 Q: What type of loan did
your last international buyer acquire? SERIES: 2014 International
Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 55
- MORE ACQUIRED 30-YEAR LOAN TERMS Q: What is the duration of the
loan in your last closed transaction with an international buyer?
SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA
ASSOCIATION OF REALTORS
- Slide 56
- OBTAINING FINANCING IS LESS DIFFICULT Q: Please rate how easy
or difficult it was for your last international buyer to obtain
financing. (1=Very easy, 10=Very difficult) SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 57
- MAJORITY DIDNT HAVE PROBLEMS WITH TRANSACTION Q: What, if any,
other problems did your last international buyer encounter with the
transaction? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 58
- CLIENT / AGENT RELATIONSHIP
- Slide 59
- REFERRALS ARE BEST WAY TO FIND INTERNATIONAL BUYERS Q: How did
you find your last international client? SERIES: 2014 International
Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 60
- INTERNATIONAL WEBSITES ARE GOOD WAY TO REACH FOREIGN BUYERS Q:
How did you market yourself to international clients? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 61
- EMAIL IS MOST POPULAR FORM OF COMMUNICATION Q: How did you
primarily communicate with your last international client? SERIES:
2014 International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION
OF REALTORS
- Slide 62
- MOST AGENTS & CLIENTS COMMUNICATE IN ENGLISH Q: In which
language did you primarily communicate with your last international
client? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 63
- MAJORITY AGENTS & CLIENTS COMMUNICATE VIA SMARTPHONE Q:
Which technological device did you utilize the most in
communicating with your last international client? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 64
- HALF FOUND PROPERTY IN 1 MONTH OR LESS Q: How many weeks did
you spend looking for a property with your last international
buyer? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 65
- FEWER WEEKS SPENT LOOKING FOR PROPERTY Q: How many weeks did
you spend looking for a property with your last international
buyer? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 66
- MAJORITY VIEWED < 9 PROPERTIES Q: How many different
properties did you view with your last international buyer prior to
the client making a purchase? SERIES: 2014 International Home Buyer
Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 67
- FEWER PROPERTIES VIEWED IN 2014 Q: How many different
properties did you view with your last international buyer prior to
the client making a purchase? SERIES: 2014 International Home Buyer
Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 68
- 70% MADE MULTIPLE OFFERS Q: How many offers did your last
international buyer make on other properties (in addition to the
one purchased)? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 69
- FEWER OFFERS MADE IN 2014 Q: How many offers did your last
international buyer make on other properties (in addition to the
one purchased)? SERIES: 2014 International Home Buyer Survey
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 70
- WHO ARE INTERNATIONAL BUYERS? Demographics
- Slide 71
- TYPICAL INTERNATIONAL BUYER 81% Married 81% College Educated
74% Male 47% Asian 43 Years Old $200K Median Income
- Slide 72
- MANY INTERNATIONAL CLIENTS FROM CHINA Q: Please tell us about
your last closed transaction with an international client. What is
your clients country of permanent residence? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 73
- CHINESE REMAINS TOP LANGUAGE AMONG INTERNATIONAL BUYERS Q: What
is your last international clients primary language? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 74
- MAJORITY ARE INDIVIDUALS Q: Was your last international client
a(n): SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 75
- MAJORITY OF INDIVIDUAL BUYERS ARE MALE Q: What is your (last
international) clients gender? SERIES: 2014 International Home
Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 76
- INTERNATIONAL BUYERS ARE GETTING YOUNGER Q: What was your (last
international) clients age at the time the transaction closed?
SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA
ASSOCIATION OF REALTORS
- Slide 77
- MOST INTERNATIONAL BUYERS ARE MARRIED Q: What was your (last
international) clients marital status at the time the transaction
closed? SERIES: 2014 International Home Buyer Survey SOURCE:
CALIFORNIA ASSOCIATION OF REALTORS
- Slide 78
- > 8/10 INTERNATIONAL BUYERS ARE COLLEGE EDUCATED Q: What is
the highest level of education your (last international) client had
completed at the time the transaction closed? SERIES: 2014
International Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF
REALTORS
- Slide 79
- OCCUPATION OF INTERNATIONAL BUYERS Q: What does your last
international client do for a living? SERIES: 2014 International
Home Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 80
- NEARLY 1/2 INTERNATIONAL BUYERS ARE ASIAN Q: How would you
describe your (last international) clients ethnic background?
SERIES: 2014 International Home Buyer Survey SOURCE: CALIFORNIA
ASSOCIATION OF REALTORS
- Slide 81
- ANNUAL INCOME/REVENUE Q: What is your (last international)
clients annual income/revenue? SERIES: 2014 International Home
Buyer Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
- Slide 82
- Slide 83
- Slide 84
- STAY CONNECTED WITH RESEARCH CARResearchGroup CARResearchInfo
On.car.org/CARResearch Housingmatters.car.org
- Slide 85
- Slide 86
- Understanding California Home Sellers Understanding California
Home Sellers Thursday, February 26, 2014 2:00 PM - 3:00 PM To
register: WWW. CAR.ORG/MARKETDATA/VIDEOS WWW.
CAR.ORG/MARKETDATA/VIDEOS JOIN US FOR OUR NEXT WEBINAR
- Slide 87
- QUESTIONS? Thank You! carmenh@car.org