Europe is mired in economic recession. Ireland, however, is not. Ireland can also be said to no longer be part of PIGS, an acronym Goldman Sachs came up with to describe four countries (Portugal, Ireland, Greece, and Spain) with what appeared to be an insurmountable government deficit and debt. Italy instead has become the ‘I’ in PIGS, with Ireland exiting.
NAR has estimated residential sales to foreign buyers at $ 82.5Billion for the 12 months ended March 2012, approximately 8.8 percent of the total residential market by dollar volume (http://www.realtor.org/reports/profilse-of-international-home-buying-activity). Data for estimated commercial real estate sales to foreigners are more limited. Real Capital Analytics provides information for transactions greater than $2.5 million. RCA has reported the total market for larger U.S. commercial property sales over 2001-2012 at approximately $2.8 Trillion, with purchases by foreign buyers in the neighborhood of $212 Billion, or 7.7 percent of total sales.
The United States attracts about 1 million immigrants (permanent residents) every year. Over time, they achieve the American dream of having higher incomes and homeownership.
Did you know that India is the top origination country of immigrants entering Virginia in 2011? Virginia accounted for about 3% of immigrants entering the United States in 2011; studies show that the majority of immigrants will ultimately buy a home. India, El Salvador, Ethiopia, the People’s Republic of China, and the Philippines rounded out the top 5 countries.
What this Means for REALTORS®: Immigrants have a huge potential to become future homeowners. REALTORS® can seize the opportunity by initiating and expanding interaction with the immigrant community, possibly learning about customs, requirements, and interests of foreign-born clients. You can find information on foreign-buyers and international programs and services at http://www.realtor.org/reports/profile-of-international-home-buying-activity, http://www.realtor.org/global, and http://www.realtor.org/reports/state-by-state-international-business-reports.
The United States attracts about 1 million immigrants (permanent residents) coming annually for family, work, and security or political reasons. In 2011, the top countries of origination were Mexico (143,446), People’s Republic of China (87,016), India (69,013), the Philippines, (57,011) and the Dominican Republic (46,109). Over time, these immigrants achieve the American dream of having higher incomes and homeownership. The homeownership rate for naturalized citizens was 66.3 percent, and 34.2 percent overall for immigrants.
What this Means for REALTORS®:
Immigrants have a huge potential to become future homeowners. REALTORS® can seize the opportunity by initiating and expanding interaction with the immigrant community, learning about customs, interests, and housing preferences. More information is available at http://www.realtor.org/reports/profile-of-international-home-buying-activity, http://www.realtor.org/global, and http://www.realtor.org/reports/state-by-state-international-business-reports.
Residential Purchases by Foreign Buyers by State
NAR’s Profile of International Home Buying Activity is available on an annual basis, providing information on the 2 to 3 percent of the existing home sales made annually to foreigners. Data from the 2010, 2011, and 2012 reports indicate that Canadians constitute the biggest segment of the market, followed by Europeans, Asians, Central/South Americans, Chinese, and Mexicans.
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