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Real Estate — Where are Global Buyers Searching in the United States?
Where are Global Buyers Searching in the United States?
Source: National Association of Realtors
Realtor.com® recently released data regarding the top countries (outside the U.S.) where consumers are the most engaged on Realtor.com® & Realtor.com® International. The data highlights the markets within the U.S. that are most popular amongst these global consumers throughout March 2013.
• Canada: Las Vegas, Fort Lauderdale, Orlando, Detroit, Naples
• U.K.: Los Angeles, Orlando, Miami, Houston, Las Vegas
• Germany: San Antonio, Los Angeles, Cape Coral, Miami, Las Vegas
• Australia: New York, Los Angeles, Las Vegas, Houston, Detroit,
• Japan: San Diego, Alpharetta, Las Vegas, San Diego, San Antonio
• Mexico: San Diego, El Paso, Laredo, San Antonio, Las Vegas
• India: Los Angeles, Orlando, Chicago, Dallas, Houston
• Brazil: Orlando, Miami, Boca Raton, Fort Lauderdale, Miami Beach
• China: Detroit, Los Angeles, Irvine, Las Vegas, Orlando
• France: Chicago, Miami, Los Angeles, Miami Beach, San Diego
• Russian Federation: Los Angeles, Miami, Orlando, New York, Detroit
• South Korea: Las Vegas, Irvine, Los Angeles, San Antonio, Columbus
• Italy: Miami, Los Angeles, Miami Beach, New York, San Diego
• Netherlands: Los Angeles, Miami, New York, Houston, Las Vegas
• Switzerland: Miami, Las Vegas, Los Angeles, San Diego, Raleigh
• Spain: Miami, Los Angeles, New York, Las Vegas, San Diego
• Ireland: Los Angeles, New York, Orlando, Chicago, Miami
• Sweden: Los Angeles, Detroit, Parkland (FL), Miami, Fort Lauderdale
• Belgium: Los Angeles, Miami, Las Vegas, Naperville (IL), Orlando
The New Real Estate Mantra: Location Near Public Transportation
The New Real Estate Mantra: Location Near Public Transportation (PDF)
Source: National Association of Realtors, American Public Transportation Association, Center for Neighborhood Technology
Fueled by demographic change and concerns over quality of life, there has been a growing interest in communities with active transportation modes. The recession added another dimension to these discussions by emphasizing the economic impli cations of transportation choices. Housing and transportation, the two economic sectors mostly closely tied to the built environment, were both severely impacted by the economic downturn. There has been a growing effort among planners, real estate professionals, and economists to identify not only the economic benefits of alternative transportation modes in and of themselves, but also the impact that they have on housing prices and value retention. The real estate mantra of “location, location, location” is more important than ever. Moving beyond the traditional arguments that good schools and neighborhood amenities impact housing prices, emerging research has indicated that urban form and transportation options have played a key role in the ability of residential properties to maintain their value since the onset of the recession.
tudies have shown that consumers are willing to pay more for housing located in areas that exemplify new urbanist principles or are “traditional neighborhood developments.” These neighborhoods are walkable, higher density, and have a mix of uses as well as access to jobs and amenities such as transit.
This analysis investigates how well residential properties located in proximity to fixed-guideway transit have maintained their value as compared to residential properties without transit access between 2006 and 2011 in five regions: Boston, Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco. The selection of these places for the study regions provides not only a geographic distribution, but also an illustrative sample of the types of fixed-guideway transit systems in the US. Minneapolis-St. Paul and Phoenix have newer light rail systems, while Boston, Chicago, and San Francisco are mature systems dominated by heavy and commuter rail. Additionally, Boston is also home to one of the earlier BRT lines.
National Association of Realtors 2013 Home Features Survey
National Association of Realtors 2013 Home Features Survey (PDF)
Source: National Association of Realtors
From press release:
Geography and demography strongly influence what buyers value in a home. The typical recently purchased home was 1,860 square feet and was built in 1996. Repeat buyers, buyers of new homes, married couples and families with children typically purchased larger homes. First-time buyers and single women tended to buy older homes. The typical buyer purchased a home with three bedrooms and two full bathrooms. Slightly over half of the homes purchased were on a single level.
Southerners tend to buy newer homes; they were more likely to want a home less than five years old and in a wooded lot with trees when compared to other regions. Not surprisingly, buyers in the South also placed a higher importance on central air conditioning.
While more than three-fourths – 78 percent – of all buyers purchased a home with a garage, garages were more popular among new-home buyers, Midwesterners, and suburbanites. Forty-one percent of homes purchased had a basement, but this feature was more popular among buyers in the Midwest and Northeast. Northeastern buyers also value hardwood floors more than people in other regions. Southerners typically bought the largest home at 2,000 square feet. Those in the Northeast followed closely behind with a typical home purchase of 1,850 square feet.
Among buyers 55 and older, 42 percent considered finding a single-level home very important, compared to just 11 percent of buyers under age 35. Single women also placed higher importance on single-level homes, while single men wanted finished basements. Both single men and married couples placed higher importance on new kitchen appliances.
International Sales Continue to Climb in U.S. Market, Realtors® Report
International Sales Continue to Climb in U.S. Market, Realtors® Report
Source: National Association of Realtors®
Due to low prices and the relative weakness of the dollar, international buyers continue to identify the U.S. as a desirable place to own property and make a profitable investment.
According to the National Association of Realtors® 2012 Profile of International Home Buying Activity, total 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. Total international sales were evenly split between non-resident foreigners and recent immigrants.
All Commercial Real Estate Sectors Continue to Improve, Multifamily Strong
All Commercial Real Estate Sectors Continue to Improve, Multifamily Strong
Source: National Association of Realtors
Shaking off a prolonged impact from the recession, fundamentals are gradually improving in all of the major commercial real estate sectors, according to the National Association of Realtors® quarterly commercial real estate forecast. The apartment rental sector has fully recovered and is growing.
The findings also are confirmed in NAR’s recent quarterly Commercial Real Estate Market Survey, which collects data from members about market activity.
Lawrence Yun, NAR chief economist, said new jobs are the key. “Ongoing job creation, which is at a higher level this year, is fueling an underlying demand for commercial real estate space, assisted by a steady increase in consumer spending,” he said. “The pattern shows gradually declining commercial vacancy rates, with consequential but generally modest rent growth.”
Yun expects the economy to add 2 to 2.5 million jobs both this year and in 2013, on the heels of 1.7 million new jobs in 2011, assuming a new federal budget is passed before the end of the year. “Although we need even stronger job growth, by far the greatest impact of job creation is in multifamily housing, where newly formed households striking out on their own have increased demand for apartment rentals – this is the sector with the lowest vacancy rates and strongest rent growth, which is attracting many investors.”
Rising apartment rents also are having a positive impact on home sales because many long-time renters now view homeownership as a better long-term option, Yun noted.
Profile of International Home Buying Activity 2011
- Of the approximately $1.07 trillion in existing-home sales between March 2010 and March 2011, approximate $41 billion dollars-worth were purchased by foreign buyers.
- Recent immigrants—those who have moved to the U.S. within the past 2 years—and individuals with visas for more than 6 months, purchased an additional $41 billion.
- Therefore, total purchases by foreign or foreign-born buyers were $82 billion, up from $66 billion reported in 2010.
Survey Shows Opposition to Down Payment Requirements and Elimination of Mortgage Interest Deduction
Survey Shows Opposition to Down Payment Requirements and Elimination of Mortgage Interest Deduction
Source: National Association of REALTORS®
NAR’s ninth housing pulse survey reflects that, as the housing market continues to struggle, Americans worry that policy proposals coming out of Washington could drag the market down further or deter potential new homeowners.
There is particular concern surrounding calls for a required down payment of 20 percent on home purchases. Seven-in-ten Americans say requiring a down payment of 20 percent on the cost of a home would have a negative impact on the housing market. The survey also shows strong concern about the possible elimination of the home mortgage interest deduction. Two in every three Americans, 67 precent, oppose eliminating the home mortgage interest deduction as part of a plan to reduce the federal deficit. A majority of Americans (51 percent) strongly oppose eliminating it. Americans believe that either action would have severe consequences for the housing market.
The survey, which measures how affordable housing issues affect consumers, also found job security concerns remain high, with 61 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership.
+ Executive Summary (PDF)
2011 Commercial Real Estate Lending Survey
2011 Commercial Real Estate Lending Survey
Source: National Association of REALTORS®
We invited a random sample of 56,000 REALTORS® with an interest in commercial real estate to fill out an on-line survey consisting of 12 questions. A total of 525 responses were received for an overall response rate of 0.9 percent.
Report Highlights
- More than 70 percent of REALTORS® name lack of available financing as a major obstacle for commercial real estate this year.
- Some 87 percent of the practitioners surveyed said it has impacted clients’ decisions in 2011.
- 59 percent of respondents reported a failed transaction in the last year due to financing difficulties.
+ Full Report (PDF)
2011 NAR Profile of International Home Buying Activity
2011 NAR Profile of International Home Buying Activity (PDF)
Source: National Association of Realtors
From press release:
The U.S. continues to remain a top destination for foreign buyers as international purchases surged by $16 billion this year, one of the highest increases in recent years.
This is according to the National Association of Realtors®’ 2011 Profile of International Home Buying Activity. According to the survey, total residential international sales in the U.S. for the past year ending March 2011 equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international existing-home sales in the U.S. were $1.07 trillion.
Inflation Watch: April 2011
Inflation Watch: April 2011
Source: National Association of REALTORS®
Inflation, or price-level growth, is important for REALTORS® because it ultimately affects mortgage rates and the ability of home buyers to purchase a home. If the Federal Open Market Committee (FOMC) lowers interest rates to stimulate the economy, you may see more home buyers in the market; however, lowering rates can also lead to inflation. So, to combat inflation, the central bank increases interest rates—which may dampen economic growth and demand for home buying.
During the recent financial crisis, fears of deflation (price-level decline) were rampant. With financial markets now stable, some fear that inflation is around the corner. There is also the possibility of stagflation, characterized by high unemployment and high inflation. In stagflation, it is difficult for the central bank to raise interest rates to combat inflation due fear of further job market deterioration if demand is hurt by the increased interest rates.
+ Full Presentation (ppt)
The 2011 Community Preference Survey: What Americans are looking for when deciding where to live
The 2011 Community Preference Survey: What Americans are looking for when deciding where to live (PDF)
Source: National Association of REALTORS®
NAR’s 2011 Community Preference Survey explores Americans’ wants regarding neighborhood characteristics such as proximity to parks and shopping, walkability, and commuting time, and the trade-offs in home type and size that people may be willing to accept in order to obtain those neighborhood preferences. The survey reveals that most Americans would like to live in walkable communities where shops, restaurants, and local business are within an easy walk from their homes, as long as those communities can provide detached single-family homes. The survey also shows that most Americans would choose a smaller home and smaller lot if it would keep their commute time to 20 minutes or less.
High-valued Homes in the U.S.
High-valued Homes in the U.S.
Source: National Association of REALTORS®
In 2009, across the US 2.2 percent of homes were valued at $1 million or more. More than twice that share, 4.6 percent, were valued at $750,000 or more, and more than twice that share, 11.1 percent were valued at $500,000 or more. Looking only at the national prevalence of high-valued housing one might conclude that it is not a big part of the market, but this could be misleading. There is substantial variation in the concentration of high priced homes across the country, and in some areas, high valued homes are a big part of the local market.
Includes maps.
American Attitudes About Home Ownership
American Attitudes About Home Ownership
Source: National Association of REALTORS®
Among the findings of NAR’s “American Attitudes About Homeownership” survey:
- The vast majority of both home owners and renters say that owning a home is a smart decision over the long term. Even in today’s challenging economy, 95% of owners and 72% of renters believe that over a period of several years, it makes more sense to own a home.
- Home owners are much more likely to be satisfied with the quality of their family and community life than renters. While more than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only about one-third (36%) of renters report the same levels of satisfaction. Also, 43% of home owners are “very” or “extremely” satisfied with their community life, compared with 30% of renters.
- An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.
- Most renters aspire to home ownership. The majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18- to 24-years-old) have the strongest aspirations for home ownership.
+ Full summary of survey results (PDF)
+ Survey charts and graphs (PDF)
2010 Metro-Area Housing Equity Reports
2010 Metro-Area Housing Equity Reports
Source: National Association of REALTORS®
How has the wealth of current homeowners changed as a result of home ownership? One way to answer that question is to create a snapshot of the equity individuals who purchased a home at the median price 5, 10, 15, and 20 years ago would have built up if they had kept that home through 2010. We did that for 154 metropolitan statistical areas (MSAs), and the findings yield some expected and unexpected results. Find out how your metro area is doing.
Individual MSA reports in PDF.
See: Homeowner Equity: Part One (NAR Economists’ Outlook
