Tag Archives: united-states
Florida is most popular state in the US for overseas buyers
Florida remains the top State in the United States for foreign buyers with Miami one of the most popular locations for overseas real estate investors. Foreign real estate buyers made up 36% of sales in Miami and south Florida accounting for transactions worth $6.1 billion, according to the 2015 international buyer report from the Miami Association of Realtor and the National Association of Realtors. The annual survey, which includes data for Miami-Dade, Broward has this year expanded to include Palm Beach and Martin counties, and ranks countries of origin and highlights key characteristics of foreign buyers. Florida remains the top for international buyers with 21% of all foreign purchases in the US and Miami and Fort Lauderdale account for 50% of foreign sales, while the data also shows that there continues to be more foreign buyers in Miami than in the rest of the country. The number of estate agent members in Miami working with international buyers increased four points to 74% compared to the previous year more than double the national figure of 35%. ‘Miami members have unparalleled access to foreign buyers compared to the rest of the country,’ said Mark Sadek, 2016 chairman of the board of the Miami Association of Realtors. ‘Miami and south Florida attract foreign buyers unlike any other US market and increasingly from a more diverse group of countries,’ he added. In terms of dollar volume of sales in Miami some 78.9% of international sales were in Miami-Dade County, 18% in Broward, 2.7% in Palm Beach and 0.3% in Martin. Unit sales accounted for 22% of total sales in south Florida. The top five countries or origin for buyers in south Florida were Venezuela, Brazil, Argentina, Colombia, and Canada, accounting for 62% of sales. Other top countries included Mexico, France and Italy, Ecuador and Spain. The top five countries of origin for those buying properties just in Miami-Dade were Venezuela, Brazil, Argentina, Colombia, Italy, Mexico, Canada, Ecuador, France, and the Dominican Republic. In Broward County it is buyers from Canada and Venezuela that topped the list followed by Colombia, Argentina, Brazil, India and Russia while in Palm Beach County it is Canada and Brazil and Martin County China and Canada. The research also shows that foreign buyers spend more on properties than domestic buyers and paid $590,000 on average compared to locals spending $329,869. They also mostly pay cash with 75% doing so. Foreign buyers also prefer condominiums with 52% opting for this type of property and 61% buy in an urban area. They are mostly buying for a holiday and as an investment. Continue reading
Sales in US up strongly, but aided by transaction carryover
Existing home sales in the United States increased again in December after seeing some months of dwindling transactions and were up 14.7% compared to November. But the data from the National Association of Realtors includes a carryover of delayed transactions from November into December as a result of the Know Before You Owe initiative. However the existing homes sales index shows a rise in sales in all four major regions, led by the South and West and transactions are now up 7.7% year on year. It means that 2015 was the best year of existing home sales at 5.26 million since 2006 when it was 6.48 million. ‘While the carryover of November's delayed transactions into December contributed greatly to the sharp increase, the overall pace taken together indicates sales these last two months maintained the healthy level of activity seen in most of 2015,’ said Lawrence Yun, NAR chief economist. ‘Additionally, the prospect of higher mortgage rates in coming months and warm November and December weather allowed more homes to close before the end of the year,’ he added. Prices are also rising. The median existing home price for all housing types in December was $224,100, up 7.6% from December 2014, the 46th consecutive month of year on year gains. The data also shows that total housing inventory at the end of December dropped 12.3% to 1.79 million existing homes available for sale, and is now 3.8% lower than a year ago. Unsold inventory is at a 3.9 month supply at the current sales pace, down from 5.1 months in November and the lowest since January 2005 when it was 3.6 months. ‘Although some growth is expected, the housing market will struggle in 2016 to replicate last year's 7% increase in sales. In addition to insufficient supply levels, the overall pace of sales this year will be constricted by tepid economic expansion, rising mortgage rates and decreasing demand for buying in oil-producing metro areas,’ Yun explained. The share of first time buyers was at 32% in December, matching the highest share since August, up from 30% in November and 29% a year ago. First time buyers in all of 2015 represented an average of 30%, up from 29% in both 2014 and 2013. A separate NAR survey from the NAR revealed that the annual share of first time buyers in 2015 was at its lowest level in nearly three decades. ‘First time buyers were for the most part held back once again in 2015 by rising rents and home prices, competition from vacation and investment buyers and supply shortages,’ said Yun. ‘While these headwinds show little signs of abating, the cumulative effect of strong job growth in recent years and young renters' overwhelming interest to own a home should lead to a modest uptick in first time buyer activity in 2016,’ he explained. All-cash sales were 24% of sales in December, down from 27% in November and are down from 26% a year ago. Individual… Continue reading
Value of US housing stock in 2015 down from overall growth the previous year
The value of all homes nationwide in the United States grew $1.1 trillion in 2015 and is expected to end the year at $28.5 trillion total. However, the value of the entire housing stock grew 4.1% in 2015, slower than the 6% growth in 2014, according to the data from real estate firm Zillow. The total value of all homes has regained $5.3 trillion since hitting its lowest point during the housing bust in December 2011, but is still $782 billion below the bubble peak value of $29.2 trillion, reached in October 2006. The dollar amount itself underscores the significance of housing to the US economy. In the third quarter of 2015, the US gross domestic product was $18.1 trillion, $10 trillion less than the total value of the housing stock. ‘This reminds us of the large role housing plays in the overall economy. Total home value growth slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they've ever been,’ said Zillow chief economist Svenja Gudell. ‘At the same time, more renter households and rising rents combined to set new records in rental spending in 2015. Americans are spending a lot of money on housing, and that will make affordability an important issue next year,’ she added. The research data shows that housing value isn't distributed equally across the country. California is home to about 12% of the population but the state accounts for nearly a quarter of the country's total home value, driven by highly valued markets like Los Angeles and San Francisco. Zillow data also shows that Americans shelled out nearly $20 billion more in rent in 2015 than in 2014 as people around the country set up 1.8 million new renter households and median monthly rents rose at a record pace. In all, renters spent $535 billion on rent in 2015, nearly as much as the total budget of the Department of Defence ($575 billion), according to a new Zillow rentals analysis. In 2014, they spent $516 billion. Renters of single family homes and apartments spent about the same amount on rent this year, with apartment renters paying $239 billion and single family home renters paying $245 billion. Renters in the New York/Northern New Jersey metro area spent the most on rent in 2015 at about $56 billion. Los Angeles area renters spent nearly $35 billion, and San Francisco renters spent $17 billion. About two thirds of the total rent paid in 2015 was spent in the 50 largest metros. Home values rose 3.9% annually in November to a Zillow Home Value Index of $183,000, according to Zillow's November Real Estate Market Reports. Denver home values grew fastest for the tenth consecutive month at 15.5% annual appreciation. Miami joined Dallas, San Francisco, San Jose, and Portland as other metros seeing double digit growth. Rents also continued their steady climb, growing 3.8% annually to a Zillow Rent Index of $1,382. The pace of rental… Continue reading
