The fastest growing segment of our industry is international real estate sales, due to affordable U.S. housing and rising affluence overseas. Real estate professionals who conduct global transactions understand the importance today of marketing their properties outside their country’s borders, and we in Northern New Mexico are no exception.
International Real Estate Sales
According to National Association of REALTORS® (NAR) 2014 Profile of International Home Buying Activity report, $92.2 billion US home sales sold to foreign Buyers in 2014, up 35% over 2013. Despite the fact that global sales fluctuate, the long term trend is up. About half those sales were to non-resident foreigners. 28% of U.S. REALTORS® reported working with international clients. 60% of foreign Buyers paid cash, and more than the average domestic home sale price, from $250,000 to over a million.
A significant share of US home purchases are made by Buyers whose primary residence is located outside of the United States. New Mexico is positioned between two of the four states that reported 55% of sales to foreign buyers: Texas, Arizona, Florida and California. 54% of sales to foreign Buyers were to residents of Canada, Mexico, India, China and UK; 19% were Canadian.
Foreign investors primarily choose the US for its location and investment potential, its security of real property, for our legal system and economic stability. International buyers are diverse in their purchases. They buy modest vacation homes and trophy properties; they look for rental and investment properties as well as personal residences. Predominantly (65%) single family home purchases, 18% of foreign sales were condominiums. 42% of foreign purchasers bought homes as primary residences; however, because non-resident internationals are limited to six month stays in the U.S., many of these buyers use these properties for vacation and rental purposes, explaining why 13% of foreign buyers choose to purchase in a resort area such as Taos.
Mentioned in a recent NAR case study of global real estate business opportunity in New Mexico, global real estate business prospects are prime within Northern New Mexico second home markets of Taos, Taos Ski Valley, Santa Fe and Albuquerque, the cross border business opportunities in the southern part of the state, and the university student investment properties near University of New Mexico in Albuquerque. The protocol of buying and selling real estate differs from country to country and can be complicated. Our affiliation with Leading Real Estate Companies of the World and our Certified International Property Specialist NAR Broker designee can help you navigate the process. Check out our website’s Global Resources page for more information.