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REALTOR®: U.S. Housing Market Receives Increasing Interest from International Buyers

Monday, July 19, 2010

The housing market may not seem as attractive to Americans without another federal home buyer tax credit, but it is receiving increasing interest from international buyers, especially in Silicon Valley, which is a center for international business.

According to the National Association of REALTORS®' 2010 profile of International Home Buying Activity, international buyers are scooping up U.S. property because they see opportunities. The drive to own a home in the U.S. is spurred by the strength of the dollar, the value and desirability of U.S. real estate and the emerging economic recovery.

"A large majority of REALTORS® report the changes in value to the U.S. dollar have had a strong impact on the international real estate business," according to NAR president Vicki Cox Golder. "In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value."

International buyer purchases made up 4.6 percent of the residential market, or about $41.7 billion worth of U.S. property from April 2009 through March 2010 - up from the 4.2 percent ($38.8 billion) of the residential market purchased by this group in 2008-2009. NAR indicates about 28 percent of REALTORS® reported having one international client this year, as opposed to 23 percent the year before.

International buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. A slight majority of the total buyers are concentrated in Florida, California, Arizona and Texas. These four states account for 53 percent of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.

"Many of our members report working with international buyers here in Silicon Valley. They also note many foreign buyers pay cash for their purchases," said Jeff Bell, president of the Silicon Valley Association of REALTORS®.

According to Carl Guardino, CEO/president of the Silicon Valley Leadership Group, "the Valley is well-poised in ethnicity and gender, not only because it is the technology center of the nation."

Speaking recently to Silicon Valley REALTORS®, Guardino noted 53 percent of engineers, 50 percent of CEOs and founders of tech companies and 50 percent of U.S. college professors in the region are foreign-born.

 NAR reports 55 percent of foreign buyers paid all cash, while the California Association of REALTORS® reports in 2009 alone, one of five buyers purchased their home with all cash, the highest since 1998.  REALTORS® explained a majority of international buyers use all cash because of the difficulty in establishing international credit in the U.S. Over one-third, 34 percent, of potential foreign buyers was unable to complete transactions because of financing problems in the U.S.

The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009's median price of $247,100. On average, foreign buyers tend to purchase closer to the upper end of the market. According to REALTORS®, this is because international buyers are typically looking for a second home.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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