Real Estate truly is a “global marketplace,” particularly in the U.S. where 8% of its $1.6 trillion Existing Homes Sales market was attributed to international buyers for the period of April 2017 to March 2018, according to the National Association of Realtors (NAR). The same report stated that international buyers purchased more than $121 billion in U.S. residential real estate, represents a 31% increase from $92.2 billion during the same 2015-2016 period.
Commercial transactions bought by international investors also represent a thriving and growing market worth billions of dollars. In 2012, $60 billion dollars flowed into the U.S commercial real estate market (or 12% of overall commercial real estate sales). Most remarkable is the growth of this market, which has increased 148% from 2012.
Viewing the country as a safe place to put their money, international home buyers preferred purchasing properties in the United States over other countries. In fact, 85% of international buyers said they only considered purchasing a home in the U.S., citing that the stable government and financial system instills confidence their home investment.
Across all market measurements, the California market is consistently one of the most attractive and high performing. In the period from April 2017-March 2018, $16.94 billion were spent by international buyers to purchase Californian real estate, up 51% from the previous year while many other states that are top destinations for foreign investment are seeing decreases.
The question real should be Why Not California?! Located amongst breathtaking beaches, sweeping desert-scapes, majestic mountains, the bounty of agricultural farmlands and pulsating cities rich with cultural diversity, California has it all for any homebuyer or real estate investor.
California, if separated from the United States, its economy would rank 8th in the world by GDP (bypassing countries such as Italy, Russia, India, Canada, Australia, South Korea and Spain).
California is home to giants of industry from sectors such as technology, entertainment, energy, agriculture, sports, aerospace and international trade. California is the gateway to Asia, with the U.S.’s two busiest ports in the country, both located in Southern California. California’s Silicone Valley in the North and Silicone by the Sea in the South are the hubs of innovation and development. The state takes pride in its many top rated Universities that teach the next generation of industry leaders.
With a population of 38 million, California is a robust and resilient market because of its consistently high market demand . With a perfect weather year around, an enviable lifestyle and diverse and thriving business sectors, there seems to be no shortage of buyers and property values continue to rise.
Foreign investing in California is gaining in popularity. However, for the First Time Buyer in the U.S., there are a lot of aspects to the home-buying process that may be confusing.
Californian Estates has produced a free, informative International Buyer’s Guide to help prospective investors learn “the ropes.” Learn about the real estate investment opportunities throughout California that have attracted worldwide attention. Understand the basics of buying in California, including how to find an agent that is your best advocate and how to choose the best neighborhood for your needs. Real estate financing is available for foreign nationals and the International Buyer’s Guide explains the process so that you may navigate all of your options. Before buying a property in California, any foreign national should consider relevant legal issues, fees and taxes and the immigration process. The International Buyer’s Guide is designed to be your resource.
Connect with a Californian Estates agent who can answer all of your questions about the Californian real estates market. Californian Estates specializes in helping international investors find, buy and sell properties. We look forward to being your advocate so that you can find your perfect property and live the California Dream!