With Brexit still fresh on minds here and abroad—and the sometimes hot/sometimes slow summer selling season well underway—some Utah sellers might well be questioning whether foreign buyer influence will remain strong throughout the nation this season.
Last month’s numbers provide an answer that’s less ambiguous than usual. The answer is definitely “yes”! The latest national data shows a growing international appetite for U.S. real estate, adding to the momentum exhibited by our now fully-recovered housing market.
A closer analysis also reveals a shift in foreign buyers’ real estate target properties from luxury to more mid-level acquisitions. Several factors serve to explain the phenomenon. Overall higher home prices could be one reason; the strength of the U.S. dollar, another. Taken together, those cost elements were seen as the most likely causes for the shift in price range targeted by foreign buyers—especially when their goal is to secure an investment property here in Utah or elsewhere.
Even so, sellers were the beneficiaries of a total increase in activity. According to the National Association of Realtors’® annual report on international activity, overseas buyers purchased upward of $102 billion worth of residential property in the U.S. between April 2015 and March 2016. The slight decrease in the prices of purchased acquisitions meant that the actual number of properties purchased also rose 2.8%—to 214,885. The bottom line was strong enough that Lawrence Yun, the NAR’s chief economist, was able to report that foreign purchasers’ overall sales dollar volume was the second highest since 2009.
So what does this mean for Utah sellers and our current real estate prospects? According to the NAR, five states topped the charts when it came to most properties purchased: Florida, California, Texas, Arizona and New York. But in fact, foreign sales are happening all over the country; the key for Utah sellers is to make sure your property is well (and widely) marketed; well-presented—and well-priced.
Whether you are looking to attract foreign buyers–or just the buyer down the street–a key contribution that’s included with my service is a comprehensive marketing approach designed to get your home sold. Call me today to get a running start on your custom marketing plan…and your sale!