|CAR’s newly released 2014 International Home Buyers Survey,showed despite a slowing in the California housing market in 2014, international home-buying activity continued its momentum.
The survey showed of the “international home-buyers” (hence referred to as “IBs”):
36% were from China and their purchases remained very cash-strong.
66% of IBs paid all cash , down slightly from 69% in 2013.
Those who purchased homes below $500,000 had the greatest tendency to pay all cash (66%), compared to those who purchased homes costing $500,000 to $1 million (57%).
Being more affluent than the average California home buyer, overseas buyers purchased more expensive homes at a median price of $490,000, compared to 2014’s single-family median home price of $447,000.
Those who purchased homes below $500,000 had the highest percentage of investment purchases (40%), compared to those who purchased homes between $500,000 and $1 million (17% for investment) or those who purchased homes over $1 million (34% for investment reasons).
Other findings from C.A.R.’s 2014 International Home Buyers Survey:
36% buyers are from China
11% from Canada
The United Kingdom and India round out the top five countries of origin, with both under 5% .
Nearly half of overseas buyers purchased a home in the suburbs.
The percentage who purchased in a city center or urban area declined from 38% in 2013 to 33% in 2014, while purchases in small towns/rural areas increased from 9% to 10% over the same period.
Of IBs who obtained financing in the U.S.:
85% said the source of their down payment came from their personal savings
11% cited proceeds from a sale of a previous property
7% received a gift; and 5% from the sale of personal assets, excluding real property
67% of IBs bought single-family detached homes, and 23% purchased a condominium or townhome.
IBs in 2014 intend to keep their property for a median of 7 years, compared to 5 years in 2013.
The percentage of first-time IBs in the U.S. declined from 59% in 2013 to 54% in 2014.
75% of overseas buyers said they purchased in the U.S., primarily to be closer to family/friends, for investment and tax reasons, or because of a child attending college in the U.S.