Eased Travel Restrictions in November Could Lead to a Surge of International Buyers Shortly.
Now is the Time to Prepare.
With the U.S easing more travel restrictions in early November and pent-up demand leading NAR and others to predict an influx of foreign buyers, now is the perfect time to analyze international buyer profiles and strategize how to market your home to attract more buyers from other countries.
International Buyers: Forecasts and Trends
Knight-Frank recently released their 2021 Global Buyer Survey which compiled the views of over 900 Knight Frank clients with a variety of annual household incomes (including 8% from $500,000 to $1m and 6% over $1M) across 49 countries and territories. In it, they found that many foreign buyers have plans to purchase a home:
Pent-Up Demand: 20% of respondents that didn't move during the pandemic said, "they are more likely to move in 12 months."
22% of people looking to buy say their second home purchase plans "have been delayed by the pandemic." (Knight Frank)
NAR's recent study also suggests there is pent-up demand: the study found that COVID-19 and its resulting travel restrictions were among the reasons that U.S home sales to foreign buyers fell by 31% from 4/2020 to 3/2021.
NAR also looked at 2020’s sources of foreign buyers for US homes and their reasons. They listed the following countries as the top 5 with foreign buyers who purchased the most homes:
Top 5 Foreign Buyers in 2020:
(Most Homes Purchased)
1) Canada (8%, $4.2 B)
2) Mexico (7% $2.9 B)
3) China (6%, $4.5 B)
4) India (4%, $3.1 B)
4) United Kingdom (4%, $2.3 B)
Resurgent Chinese Demand:
-China is particularly important to watch as CT was one of the top 10 states where buyers purchased homes in 2020. (NAR)
CNBC's look at foreign investment in the US also explores pent-up demand and focuses on the importance of watching China, which appears to be "surging back" into the buyer pool (they used to be "the lead demand for U.S. housing in the early part of the last decade but then fell back slightly during the Trump administration.")
-Strategies to Market a Greenwich Home: Educational opportunities can be an important factor in purchasing decisions for buyers from China. As CNBC pointed out, "More recently, Chinese buyers especially have purchased homes for their children, hoping to take advantage of higher education opportunities in the U.S." (CNBC) Greenwich, known for its school system, will be attractive.
Return on investment might also need to be a subject you're prepared to discuss. As CNBC points out, "international buyers continue to be driven by high potential returns on investments as well as seeing the U.S. as a safe haven for cash."
Buyers Preferences
Knight Frank's recent survey found that the following were among the most popular buyer trends.
Waterfront Residences and Detached Homes: 46% said that the pandemic made them more inclined to buy a detached home or villa while 42% said the same about waterfront residences.
Home Office/Study and High-Speed Broadband: 67% said that a home office/study would be one of the “more important” factors in their purchasing decision.
Health and Well-Being: The following were important to the majority of buyers:
-Green Space
-Air Quality
-Healthcare Access
-Good Views (Ocean, Mountain, Skyline)
Sustainable Living:
27% would “prefer a greener home and are willing to pay more for it.”
The following percentage of people say the following would “very important” or “important” in their purchasing decisions:
-Future Environmental Regulations: 28%
-Green Financing: 22%
-Energy Efficiency: 84%
Call us today for more data and for strategies to market your home.