198 respondents provided information.

Transcription

1 2015 Profile of International Buyers in Greater San Diego, CA Conducted by the National Association of REALTORS Research Division for the Greater San Diego Association of REALTORS NAR Research Division Jed Smith, Managing Director, Quantitative Research, NAR Gay Cororaton, Economist, NAR Sherry Hodges, Director, Government Affairs, GSDAR

2 About the Survey Objective: Determine the significance and characteristics of international clients in the Greater San Diego, CA area. Data Collection: April 1 June 15, Survey captured information on transactions with international clients from April 2014 to March International clients: Non-resident Foreigners-- don't live in the U.S. year-round. Resident Foreigners-- recent immigrants (less than 2 years in the U.S.) or those in the U.S. on temporary visas such as foreign students and workers. 198 respondents provided information.

3 About the Survey NAR Research Division Jed Smith, Managing Director, Quantitative Research, NAR Gay Cororaton, Economist, NAR GSDAR Staff Contact Sherry Hodges, Director, Government Affairs

4 Major Findings SDAR respondents reported international clients as an important niche market: International sales (units): 22 percent of total sales compared to eight percent nationally. 64 percent of respondents worked with an international client compared to 35 percent nationally. 39 percent of respondents sold at least 1 property to an international client compared to 19 percent nationally. Roughly 35 percent of respondents reported an increase in international clients in the past five years compared to 17 percent nationally.

5 Major Findings Characteristics of San Diego International Buyers: 61 percent resident buyers compared to 52 percent nationally. Foreign buyers in San Diego Asian 42 percent of foreign buyers; Latin American 22 percent of foreign buyers. Major Destinations: San Diego Metro, University City, Chula Vista, and Rancho Bernardo. Median prices. International Buyers in San Diego: $576,400. International Buyers, National Level: $265,100. Residential, National Level: $208,900 Residential, San Diego: $439,000.

6 Major Findings Average prices. International Buyers in San Diego: $988,100. International Buyers, National Level: $499,600. Residential, National Level: $255,600. Residential, San Diego: $556, percent of San Diego sales to foreign buyers intended for use as vacation, rental for investment, or both, compared to 46 percent of purchases by foreign buyers at the national level.

7 Major Findings 57 percent of properties sold to international clients were detached single-family properties, compared to 61 percent of international purchases at the national level. 53 percent of properties sold to international clients were all-cash sales, compared to 55 percent of international purchases at the national level. REALTORS responding to survey reported median years of experience as 10 years, the same as national experience levels.

8 Greater San Diego Association of REALTORS Experience with International Clients Based on Transactions from April 2014 thru March 2015 Detailed Data Charts

9 39 Percent of SDAR Sold a Property to an International Client Compared to 19 Percent Nationally Number of Properties Sold to International Clients* 12 Months Ended March % 80% 70% 60% 50% 40% 30% 20% 10% 0% 81% 61% 22% 9% 8% 4% 4% 2% 2% 1% 3% 1% 3% 2% or more *Percentage distribution among all respondents SDAR National

10 International Sales: 22 Percent of San Diego Unit Sales Compared to Four Percent Nationally 25% 20% International Sales (Units), As Percent of Total Sales 12 Months Ended March % 15% 10% 5% 4% 0% SDAR 22% National

11 Personal Contacts and Previous Clients The Most Important Sources of Clients How San Diego REALTORS Obtained International Clients 12 Months Ended March % 10% 20% 30% 40% Personal contacts Referrals from previous clients Past clients as repeat customers Walk-in, open house, office call, etc. Online marketing Traditional marketing Business contact outside the U.S. Business contact in the U.S. Other 7% 6% 4% 3% 3% 12% 11% "Other" includes reasons such as former rental client, agent was listing agent 29% 26%

12 REALTORS with International Clients Typically Had One or Two International Clients Similar to National Experience Number of International Clients* 12 Months Ended March % 60% 50% 40% 30% 20% 10% 0% 56% 58% 21% 20% 14% 11% 3% 5% 2% 3% 3% 0% 1% 2% 1 to 2 3 to 4 5 to 7 8 to to more than SDAR National 20 *Percentage distribution among respondents who had an international client

13 Among REALTORS with an International Client, Approximately Half Reported One to Two Clients Who Purchased Property Number of International Clients Who Purchased Property* 12 Months Ended March % 40% 30% 37% 44% 31% 28% 20% 15% 13% 10% 7% 5% 3% 3% 4% 1% 2% 3% 2% 2% 0% to or SDAR National more *Percentage distribution among respondents who had an international client

14 Not All Transactions Led to a Purchase: Could not find property, Cost, and Financing Issues Were Major Reasons for Not Purchasing Reasons International Client Did Not Purchase Property 12 Months Ended March 2015 Could not find a property Cost of property Could not obtain financing Exposure to U.S. tax laws Immigration laws Property taxes Condo/maintenance fees Loss of home country benefits Insurance costs Don't know Other 0% 5% 10% 15% 20% 25% 2% 1% 1% 7% 5% 4% 6% 14% 21% 20% 19% "Other" includes reasons such as buyer decided to wait, lost the offer, purchased in another state, job did not come through, decided to rent, etc.

15 19 Percent of Respondents Who Had an International Client Reported a Commercial Sale to an International Buyer Number of Commercial International Sales of San Diego REALTORS * 12 Months Ended March % 80% 70% 60% 50% 40% 30% 20% 10% 0% 81% 13% 5% 0 1 to 2 3 or more *Percentage distribution among respondents who had an international client

16 10 Percent of Respondents Who Had a Client Reported the Client Purchased Both Residential and Commercial Property International Clients Purchasing Both Residential and Commercial Property* 12 Months Ended March % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 89% 9% 1% 0 1 to 2 3 or more *Percentage distribution among respondents who had an international client

17 29 Percent of Respondents Reported an Increase in Clients in the Past 12 months, Compared to 13 Percent Nationally 70% 60% 50% 40% 30% 20% 10% 0% 29% 13% Increased Change in Clients, 12 Months Ended March % 61% Stayed about the same 9% 8% 9% Decreased 18% Not appicable, less than 1 year SDAR National

18 34 Percent of Respondents Reported an Increase in Clients in the Past Five Years, Compared to 17 Percent Nationally Change in Clients, Past Five Years Ended March % 50% 44% 51% 40% 34% 30% 20% 10% 17% 7% 7% 14% 25% 0% Increased Stayed about the same Decreased Not applicable, less than 5 years SDAR National

19 Median Years as a REALTOR was 10 years, Same as the National Figure Number of Years as a REALTOR 30% 25% 20% 15% 10% 5% 6% 10% 14% 27% 20% 20% 19% 17% 10% 10% 23% 24% 0% Less than 1 year 1 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years 21 years or more SDAR National

20 Characteristics of the Foreign Buyer Based on Transactions from April 2014-March 2015

21 61 Percent of Foreign Buyers Were Resident Buyers, Compared to 52 Percent Nationally Type of Typical International Client of San Diego REALTORS in Past 12 Months Ended March 2015 Type of Typical International Client in Past 12 Months Ended March 2015, National Level Resident 61% Nonresident 39% Resident 52% Nonresident 48%

22 Clients from Asia/Oceania and Latin America Accounted for 64 Percent of All Foreign Buyers Origin of Foreign Buyers* Purchasing from San Diego REALTORS 12 Months Ended March % 5% 10% 15% 20% 25% 30% 35% 40% 45% Asia/Oceania 42% Latin America (inc. Mexico) 22% Europe 17% Middle East 9% Canada 6% Africa Unknown *Based on the most recent sale 1% 3%

23 Approximately Half of International Buyers from China, Mexico, and Canada Major Foreign Buyers Purchasing from San Diego REALTORS 12 Months Ended March % 40% 35% 30% 25% 20% 15% 10% 5% 0% 23% 19% 6% 6% 6% China* Mexico Canada Iran United Kingdom *"China" includes People's Republic, Taiwan, and Hong Kong 41% Others

24 Destination of Foreign Buyers Destination of Foreign Buyers Purchasing from San Diego REALTORS 12 Months Ended March % 30% 25% 20% 15% 10% 5% 0% 16% 9% 7% 7% 6% 4% 3% 3% 3% 3% 3% 3% 31% * Not enough sample size to provide more detail.

25 San Diego Home Prices Paid By International Buyers Median Price: $576,400; Average Price: $988,100 Mean and Median Prices of Properties Purchased by Foreign Buyers 12 Months Ended March 2015 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $988,100 $576,400 $556,800 $439,000

26 All-Cash Purchases: 53 Percent, About the Same as Nationally for International Buyers Type of Financing of Foreign Buyers Purchasing Property from San Diego REALTORS 12 Months Ended March 2015 Mortgage financing - Home country 3% Other 3% Mortgage financing-u.s. 41% All cash 53%

27 Foreign Buyers Preference for Detached Single-family Homes 60% 50% 40% 30% 20% 10% 0% Type of Property Purchased By Foreign Buyers from San Diego REALTORS 12 Months Ended March % 21% 10% 6% 1% 4%

28 Fifty Percent of Commercial Purchases by International Buyers Were for Office Properties Type of Commercial Property Purchased by Foreign Buyers from San Diego REALTORS 12 Months Ended March 2015 Hotel 25% Office 50% Retail 25%

29 59 Percent of Properties: Intended Use for Vacation and Rental Intended Use of Property Purchased by Foreign Buyers from San Diego REALTORS 12 Months Ended March % 25% 20% 15% 10% 5% 0% 28% 21% 13% 10% 7% 7% 6% 4% 1%

30 Comments on Methodology Conclusions are Based on REALTOR Responses to Questionnaire. Based on a random sample Not a complete enumeration of all transactions. Conclusions are point estimates, based on statistical sampling. At 198 responses the sample size of respondents with international clients is adequate for estimation purposes, but could produce large variances for subsamples. Numbers reported are point estimates based on best available data may be plus or minus six percent. Survey based on transactions from April 2014 to March Important to note that 12 Months of data are available but NOT in standard yearly form ending December.

31 Questions about this report may be directed to For other NAR Research, please visit research-reports For information about SDAR, please visit

32 2015 Profile of International Buyers in Greater San Diego, CA Conducted by the National Association of REALTORS Research Division for the Greater San Diego Association of REALTORS July 2015