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U.S. Residential Purchases byInternational Buyersy
June 2010
Total U.S. Residential Transactions Were $907 Billion, Twelve Months Ending in First Quarter 2010.Months Ending in First Quarter 2010.
International Purchases Were 4 Percent.
U.S. Residential Market: $907 Billion
Foreign Purchasers4.45%
Domestic Purchasers95.44%
Twenty Eight Percent of Realtors® Reported Having at Least One International Client in 2010.
Eighteen Percent with Transaction Completed.
Realtors: Foreign Client Percentages
32%
28%30%
35%
26%
23%
18%
13% 12%
18%
15%
20%
25%
13% 12%
0%
5%
10%
15%
0%
2007 2008 2009 2010
Realtors who had international clients Realtors who sold homes to international clientsRealtors who had international clients Realtors who sold homes to international clients
Previous Clients and Friends Provided 53 Percent of the Initial Contacts for Realtors® Serving the International g
Market.
Initial Client Contact
Domestic source13%
International source3%
Previous contacts/
Web13%
Previous contacts/ clients34%
Walk in Office/ Open house9%
Ad/ Yard signs
Other31%
Friends19%
Ad/ Yard signs8%
All Others1%
International Market Appears to be Relatively Concentrated: the Number of Realtors® with a Large Number of International Clients is g
Limited.
11 or moreRealtors With International Clients ‐‐Number of Clients
129%
57%
6 to 106%
11 or more4%
29%
49%
2
317%
28%
Two Percent of Realtors® Obtaining 75 to 100 Percent of their Transactions from International Clients. Three Percent Obtaining 51‐g
75 Percent.
Percentage of Transactions by Realtors with International Clients
43%
40%
45%
50%
24%25%
30%
35%
11%15%
20%
25%
6% 5% 6%
3% 2%
0%
5%
10%
0% (N ) 1% 5% 6% 10% 11% 15% 16% 25% 26% 50% 51% 75% 76% 100%0% (None) 1% to 5% 6% to 10% 11% to 15% 16% to 25% 26% to 50% 51% to 75% 76% to 100%
Five Percent of Realtors® had Six or More Clients.
Percent of Realtors by Number of Clients Purchasing Property
6 to 1011 or more
2%
Z
3%2%
Zero34%2 to 5
30%
1 only31%31%
The International Client: Type A, Type B, and Both Served by R lt ®Realtors®.
International Client Types Served by Realtors
21%
41%
38%
Type A: Primary residing in another country
Type B: Recent immigrants and short term visa holders
BothBoth
Why Clients Do Not Purchase.Thirty Four Percent Had Financing Problems.
Why Clients Did Not Purchase—in Addition to the 34 percent
35%Not find a property
Encountering Financing Problems
9%
13%
19%
Exposure to U.S. tax laws
Immigration laws
Cost of property
3%
4%
7%
Insurance costs
Loss of home country benefits
Property taxes
18%
3%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Other
Insurance costs
International Purchasers: Diversity of Areas and C t iCountries.
Purchases by Client Regions or Origin
Africa4%
Oceania1%
4%
Asia28%
North America35%
Europe26%
Latin America
6%
International Purchasers: Diversity of Areas and C t iCountries.
Purchases by Client Nationality‐‐2010
23%
20%
25%
15%
10%9%
8%7%
5%
10%
%
3%2%
0%
5%
C d M i U i d Ki d Chi /H K G /F I di R i A i /B ilCanada Mexico United Kingdom China/Hong Kong Germany/France India Russia Argentina/Brazil
Canada‐‐Largest Buyer Group in the Past Three Years. Share of Mexican Buyers is Growing. Share of U.K. buyers has been y g y
Decreasing.
International Purchasers: Country of Origin
25%
30%
15%
20%
2007
2008
5%
10%2008
2009
2010
0%
International Purchases—Pricing.International Purchases Pricing.
Purchase by Price Range
3%
7%
$750 K to $1 Million
Over $1 Million
11%
9%
6%
3%
$300 K to $400 K
$400 K to $500 K
$500 K to $750 K
$750 K to $1 Million
11%
10%
8%
$150 K to $200 K
$200 K to $250 K
$250 K to $300 K
18%
17%
0% 2%
$100 K or less
$100 K to $150 K
Pricing Over Time.Pricing Over Time.
Percent of International Sales by Price
45%
50%
30%
35%
40%
45%
2007
2008
10%
15%
20%
25% 2008
2009
2010
0%
5%
Under $200K $200K to $500K $500K to $1 Million Over $1 Million
Types of Properties Purchased.Types of Properties Purchased.
Type of Property Purchased
Commercial Property3%
Detached single‐
Condo/ Apartment23%
3%
family66%
Townhouse/ row house8%
MortgagesInternational Purchasers Frequently Pay Cash.
Property PaymentDon't know
1%
All cash (no mortgage financing)
With mortgage financing44%
55%
International Buyers are Split Between Use of the Property as a Vacation Home/Investment Home and p y /
as a Primary Residence.Intended Use
Vacation home for family and friends
22%22%
P i id
Residential rental property for
Primary residence50%
property for investment
14%
Both of the above14%
Price AnalysisPrice Analysis
Price distribution by residence purpose
8%11%Over $750 K
9%
25%
6%
11%
6%
14%
6%
$200 K to $250 K
$250 K to $300 K
$300 K to $500 K
$500 K to $750 K
14%
14%
14%
11%
23%
20%
9%
11%
$100 K or less
$100 K to $150 K
$150 K to $200 K
$200 K to $250 K
0% 5% 10% 15% 20% 25% 30%
Non‐primary residence Median: $186,100Primary residence Median:$240,000Primary residence Median:$240,000
International Buyers Purchase Property in a Variety of Types of AreasVariety of Types of Areas.
Location Characteristics
Resort area14%
Central city/ urban area27%
Small town/ rural area9%
Suburban area50%
Transactions by State.Transactions by State.
Percent of Transactions by State
25%
30%
15%
20%
2007
2008
10%
15% 2008
2009
2010
0%
5%
Fl id C lif i A i T G i N Y k N dFlorida California Arizona Texas Georgia New York Nevada
Realtors® Have Been Reporting Modest Increases in I t ti l Cli tInternational Clients.
How Has Percent of International Clients Changed?
70%
40%
50%
60%
10%
20%
30%
0%
Increased Stayed about the same Decreased Not applicable
Last Year Last 5 Years
The Value of the Dollar Appears to Impact I i l S lInternational Sales.
Effect of Change in Value of Dollar on International Sales
Not much21%
Very significant38%
Moderate41%
The Value of the Dollar Appears to Impact I t ti l S lInternational Sales.
U.S. Median Home Price: Dollars and Euros
Price in $200
250
U.S. ed a o e ce: o a s a d u os
100
150
ce in
1,000
Price in €
0
50
100
Pric
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
1,000 Euros 155.1 171.5 174.9 157.3 156.3 175.7 177.5 159.9 132.7 122.5 140.71 000 Dollars 143 6 153 1 165 0 178 8 195 4 219 6 221 9 219 0 198 1 172 5 173 1
0
1,000 Dollars 143.6 153.1 165.0 178.8 195.4 219.6 221.9 219.0 198.1 172.5 173.1
Security and Profitability: Prominently Mentioned as Reasons for PurchasingReasons for Purchasing.
Most Important Issue for Clients
A secure investment.
Other8%
18%
Profitable investment.
29%
Desirable location.45%
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