International Buyers Fuel Residential Market

Demand from international investors is adding a new dimension to the residential market recovery, according to a recent National Association of Realtors survey and blog post. Between April 2009 and March 31, 2010, $66 billion of residential property — 7 percent of the total U.S. residential market — was sold to foreign nationals, recent immigrants, and temporary visa holders. The increase in international clients has crossed over from residential to commercial and industrial assets as well, according to Ines Hegedus-Garcia, a Miami-based realtor. International buyers “are savvy cash buyers who do their homework and pull the trigger fast once the numbers make sense,” Hegedus-Garcia said.

NAR cited a 50 percent increase in Realtor.com visits originating from Western Europe, the Middle East, South America, and Asia over the past two years with the international investors targeting properties in Florida, California, Arizona, Texas, Georgia, New York, and Nevada. Local realtors also have noticed increased interest from abroad as 28 percent reported working with at least one international client in 2009 – 2010, up from 23 percent in 2008, according to NAR research.

Residential Roundup

How international investors plan to use residential purchases based on a recent National Association of Realtors survey

• 50 percent plan to make U.S. purchase primary residence
• 25 percent bought vacation homes for their own use
• 14 percent bought residential rentals for investment
• 14 percent want purchases to double as their own vacation home and a rental