By AUDREY LEONCIO | Special to the Palisadian-Post
With the recent low in-home mortgage rates and the flexibility in workplace dynamics, the increase in foreign buyers is high. The remote work mindset, built by the pandemic, has enabled many to seek homes outside of their norm, granting them the ability to travel where they’d like and find refuge more than just for vacation. Many out of country buyers are eager to find their home within the states, and though buyers from China were on the decline, Canada has taken the lead in interest for United States-based property. The proximity between the US and Canada allows for an easy visit. The buyer has the ability to come and go as they please, at an affordable cost, without the complications of traveling internationally. It’s the best of both worlds in their eyes.
With total purchases in 2021 exceeding $107 billion and paying an average of $46 thousand over domestic purchases, foreign buyers are a strong addition to the market. Though Canada leads the international buyers at 23.3%, China follows at 15.8%, Mexico comes in third at 8.5%, followed closely by France (8.1%) and Germany (6.2%).
These five countries represent over 60% of the international interest for purchasing in the United States. Many of which are seeking property in Florida, California, New York, Texas or Hawaii. In addition, 39% of these buyers are purchasing homes in cash, versus waiting for financing.
So, what are they looking for?
Well, while the majority of these buyers (73%) are looking for homes, 27% searched for apartments to purchase instead. Though the price ranges do vary, the most popular price range foreign buyers are seeking is between $1 to 2.5 million. Buyers say they want something that is newly updated, so they don’t have additional work to do with the home. They’re also looking for real estate that gives them a sense of security, health, safety, and privacy. While also desiring something that allows them to focus on school, work, socializing and entertainment activities that occur from the home.
The icing on the cake? Many foreign buyers who are seeking luxury homes are interested in smart homes that offer full integration for daily living and energy efficiency.
Audrey Leoncio is a top sales partner at Amalfi Estates, whose team has sold $2 billion in properties and was selected by the Wall Street Journal as one of the top 40 agents in the country out of one million agents. If you are thinking of buying a home or selling your own, contact Leoncio at 949-413-3477 or audrey@amalfiestates.com.
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