While we love following the local development, trends and policies that shape our community (anyone else excited about Google San Jose?!)… we also happen to believe that a little global perspective goes a LONG way. This week, the National Association of Realtors released a report revealing a 49% increase in US residential property purchases from international buyers, with California among the top 3 states for such sales! In the 12 month period ending in March 2017, over $153 billion of residential property was secured by recent immigrants and investors from around the world.

Amidst a challenging period of low inventory, high prices and dampening affordability – it might seem unusual to us locals that these market conditions would actually attract people from around the globe, right?! Yet the latest stats reveal that the interest in residential real estate in our backyard may be here to stay – on account of planned and projected growth in tech jobs, as well as the unarguably solid investment potential from eyes and wallets around the globe. Though it feels as though the Bay Area market may be one of the most challenging in the state and even across the nation… other countries have experienced even more demanding market conditions. Consider the following:

| 5 countries, including Canada, experienced even quicker home price appreciation and affordability issues than the United States.

| Many countries around the globe are facing a weakening of their local currency against the dollar, making buying even more expensive  (if not unattainable) for them in the future.

| NAR's Chief Economist Lawrence Yun states that this surge in purchases from offshore buyers reflects that this investor pool “…increasingly acted on their beliefs that the U.S. is a safe and secure place to live, work and invest."

| Nearly half of all foreign sales occurred in California, Florida and Texas, which means that our steadfast sunny skies only add to the economic, educational and employment trends that make our land and lifestyle so attractive.

If you feel like homeownership is hard and getting harder, you might be right! But for buyers around the globe facing financial, political and/or economic turmoil… the grass that we view as not-so-green is truly their field of dreams. In addition, the increasing investment dollars being spent in our local markets only adds to the discernment of real estate as an asset, and of course as the comfort of home.

Read the full NAR® Report here: Profile of International Activity in U.S. Residential Real Estate

Resources Used:

Foreign Homebuyers Surge into U.S. Market

Foreign U.S. Home Sales Dollar Volume Surges 49 Percent to Record $153 Billion

Foreigners Snap Up Record Number Of US Homes

Let us know if you have any questions about the status of the market from a local, regional, national or international perspective!

Mark & Jason