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.
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.
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:
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®.
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:
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.
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.
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.
The full ListGlobally year in review report can be found here.
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