Overseas buyers make up biggest percentage of US real estate sales ever.
For those looking to sell a high-end home in the LA area, globalization is a good thing. According to data from the National Association of Realtors, buyers bringing cash from overseas accounted for $92 billion in residential real estate sales in the US from April 2013 to March 2014. That’s an increase of 35 percent over the preceding year. In fact, it’s the highest level of home purchasing by foreigners ever before recorded.
A good portion of that foreign money is coming to the Los Angeles area. LA, and California in general, has long been a favorite destination for anyone cherishing the American Dream. Countless Chinese immigrants have made their way here over the years, and California continues to hold appeal for Chinese buyers, who accounted for nearly a quarter of all purchases made by overseas buyers last year. Los Angeles was the top search destination for Chinese users on realestate.com, followed by San Francisco and Irvine.
Experts following this trend point to several reasons why overseas buyers and Chinese in particular may be so interested in California real estate:
Familiarity: New immigrants tend to follow the old, settling in the same areas and regions. They may already be familiar with the area from visiting relatives, and in some communities there may also be restaurants, shops, and other businesses that cater to a specific group and make immigrants feel more comfortable.
Education: Some Chinese buyers are purchasing homes for the younger generation to live in while attending college in California. Other buyers are young immigrant families looking for homes in top-rated school districts.
Investment Potential: The real estate market in China is absolutely booming at the moment. With prices so high for condos in the big Chinese cities, many individuals are choosing to come to the US where they can get much more space for their money. Other buyers are looking for a more stable place to stash their cash, preferring to buy into the recovering US market than risk putting their money into a booming Chinese market that could be revving up for a bust.
What this Influx of Overseas Buyers Means for You
If you are selling a home in an area that is appealing to overseas buyers, you will be happy to know that their interest could help you get a better price. For example, in Irvine, a city very popular with Chinese buyers, home values are actually up to pre-recession levels, while in other areas values continue to lag behind. Building a strong online profile for your home should help get your property out for the world to see. List your home with Ty Wallace and get expert help marketing your property, including everything from staging your home to having professional photos taken to creating that irresistible online listing.