One of the biggest trends in the U.S. housing market during the past year has been the increasing prevalence of international buyers. The surge has been well-chronicled, but mostly gleaned from anecdotal evidence to this point.
Not any longer.
A new report from the National Association of Realtors shows just how big an impact these foreign buyers are having on U.S. home sales. For the 12-month period ending in March, foreign buyers accounted for $92 billion worth of home purchases in the U.S. To put that into perspective, that is a mind-boggling 35 percent jump from the previous year and is easily an all-time high. It also represents seven percent of all money that was spent on homes in the U.S. during that time.
Accounting for nearly one-quarter of the total sales by foreign buyers were the Chinese. There preferred destination continues to be Los Angeles and surrounding areas. For the Chinese, Southern California is seen as the most attractive option for any number of reasons. According to Jed Smith, managing director for quantitative research at the Realtors Group, the Chinese prefer to send their children to universities and high schools that are located in top districts in Southern California. Additionally, the housing market in China is so “overheated” that even a notoriously expensive city like Los Angles seems like a bargain.
One Southern California-based agent pointed out the Chinese housing market is so “crazy” right now that a person can sell a small condo in China and easily afford single-family house in Los Angeles. That is truly a huge development in international real estate.
As you would expect, real estate brokerages are increasingly focusing on the international market. Some are even going as far as opening up offices in China to better reach new customers.
One of the best ways to reach the luxury market in China is through the Web site Juwai.com. Every property listed on this site is also advertised through Juwai.com, providing the maximum exposure to your property.