Posted by: rgmorgan | June 2, 2011

So You Want to Sell Your House


I know I have talked about the impact that foreign buyers have had on our local real estate sales but new statistics from the National Association of Realtors confirm that impact is growing and should not be ignored.

In the year ending in March 2011 foreign buyers spent $82 billion dollars on US real estate up from $65 billion for the year before. This was split between non-resident foreigners and recent immigrants. These buyers came from 70 different countires up from 53 countries in the year before. They were led by Canada at 23%, China was second at 9%, Mexico, the UK and India were tied for third. Argentina and Brazil combined for 5% up from 3% the previous year.

The average price paid was $315,000 but 45% of homes purchased were under $200,000 so you can see they are not only after the luxury homes. 61% of the sales were single family homes and 36% were condos or townhomes. 62% of these purchases were all cash since financing continues to be a hurdle for foreign buyers.

There are three major factors affecting the buying decision; convenience to air transportation, climate and of course location. Florida had the most activity with 31% foloowed by California at 12%, Texas at 9% and Arizona with 6%.

Many realtors understand the importance of this market segment and have become more focused on marketing efforts and connectivity to the international market. The internet plays a significant part in this effort of world wide marketing.


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