Illinois real estate is generally a stable, safe investment Illinois Association of REALTORS® President Jim Kinney told the media at a press conference late last week for the Chicago chapter of the Asian Real Estate Association of America (AREAA).
With the volatility of foreign markets, Kinney says U.S. real estate – especially in his home state – is more about stability and safety for capital rather than high return. Kinney was one of several individuals who answered questions about global investing two months in advance of the April AREAA Global + Luxury Summit in the Windy City.
Other speakers were: Jan Hope, Vice President of Commercial and Global Services for the National Association of REALTORS®, Craig Hogan, Director of Luxury Property for Coldwell Banker Previews and Nancy Suvarnamani, IAR member and Co-Chair of the summit.
Suvarnamani highlighted the fact Illinois ranks fifth in the number of international students enrolled in its universities. She said those students are major contributors to the state’s economy, citing international student expenditures of more than $1.2 billion in 2013. Many of the students purchase condos for use during their school years.
Hogan said higher price-point buyers are younger than in the past, demand high-level finishes and appreciate features in the home such as remote-controlled window shades and other automated amenities. Hogan emphasized that REALTORS® in the luxury market really need to be aware of these new trends in home automation technology so they can demonstrate them for clients and sell their advantages. Be prepared because the clientele are aware they are available.
“Buyers know more than you think they do,” he said.
The Global + Luxury Summit is scheduled for April 19-21 at Trump International Towers in Chicago. IAR members who register by Feb. 27 will pay the early-bird registration fee of $399. To take advantage of the discount, visit area.org/summit and register using the discount offer code: IARGS2015.
More international buyers are looking to buy real estate in the U.S. according to the National Association of REALTORS® 2014 Profile of International Home Buying Activity.
Between April 2013 and March 2014, sales to international buyers totaled $92.2 billion, a sizable increase from $68.2 billion the year before. What’s driving the interest in the U.S. real estate market? Favorable exchange rates, affordable prices and rising affluence abroad, NAR reports. Read the report.
The Illinois Association of REALTORS® Multicultural Summit, Sept. 4 in Chicago, offers insight into working with one growing sector of the global market — the Latino buyer.
This one-day program, which coincides with the IAR Fall Conference & Expo at the Hyatt Regency McCormick Place, features informational panels covering the issues and trends facing the Latino market in Illinois. Learn more and register.
Low prices and a weaker U.S. dollar are driving more international buyers to invest in U.S. real estate, the National Association of REALTORS® (NAR) reports. Residential international sales in the U.S. for the past year ending March 2012 equaled $82.5 billion, up from $66.4 billion in 2011, according to NAR’s 2012 Profile of International Home Buying Activity.
“Foreign buyers recognize that owning a home in the U.S. has many benefits, both financial and social,” said NAR President Moe Veissi, broker-owner of Veissi & Associates, Inc. in Miami, Fla. “Many purchase property as an investment, vacation home, or to diversify their portfolio. In addition, many recent immigrants view homeownership as an important accomplishment. They believe that being a homeowner is one of many ways they become established in the U.S. and attain stability, security, and a sense of community.”
Find media coverage of NAR’s international report:
Most of you probably have heard the statistics that Mexico is one of the largest trading partners to the U.S. Many are also well-aware of the increase in the Mexican-American population over the last several decades.
However while we buy their goods here and they are investing in our companies here and many are moving here, are you also aware that many Americans are moving to Mexico?
While the demand fluctuates with changes in the economy and overall trends, older Americans are looking to Mexico to spend their golden years. ”Large groups of Americans can be found in San Miguel de Allende, Lake Chapala, La Paznand Los Cabos on the Baja Peninsula and the Puerto Vallarta region on Mexico’s Pacific coast,” according to the article, “Retiring in Mexico: Still An Option?” in the April issue of the National Association of REALTORS® (NAR) Global Perspectives.
Could Mexico be a potential option for a client of yours? Maybe, maybe not. Check out the link below with the full article. If not Mexico, maybe it’s somewhere else around the globe. NAR’s International property database is growing and including more and more countries. Check out the database and get a glimpse of the world of opportunity in real estate for you and your clients!
NAR recently issued the 2011 Profile of International Home Buying Activity. The international market for U.S. residential property approaches $82 billion on an annual basis. Twenty-eight percent of REALTORS® reported experience with an international client in this year’s report. Nine percent of REALTORS® reported six or more sales to international clients. International buyers came from a total of 70 countries with the top five countries being Canada, Mexico, China, U.K., and India.
Why are international buyers looking to the states to purchase property?
According to the report, here are some of the reasons:
- Many international buyers to date have been due to a transfer to the U.S. and job location.
- Some buyers are reported purchasing U.S. properties in college areas for college residences for children and investment purposes.
- Location, security and profitability are important factors influencing purchases.
- Many Canadians are looking for investment or lakefront recreational property.
- Buyers tend to cluster in specific locations based on their countries of origin, probably based on word-of-mouth and shared experiences.
- The average price paid by international buyers was $315,000 in comparison to the overall U.S. average of $218,000.
- 62% of international purchases are reported as being all cash.
To read the full report 2011 Profile of International Home Buying Activity and learn how agents specialize in this market, go to http://www.realtor.org/press_room/news_releases/2011/05/foreign_buyers