2013 was an interesting year for the U.S. real estate market. Many formerly depressed housing markets managed to climb their way out from underneath the recession, finding more stable footing and watching prices skyrocket as a result. This includes the Los Angeles luxury home market, where prices rose tremendously, as did buyer interest.
But experts say that not all of those buyers were domestic, citing that many foreign buyers also saw tremendous value in investing in U.S. real estate. While foreign purchasers only accounted for about 6 percent of home sales around the country in 2013, places like Southern California saw a massive uptick in foreign moneys pouring in.
Foreign buyers tend to focus their searches in major U.S. cities. According to one real estate expert: “There are some parts of the United States that see very strong foreign demand and that helps keep prices high in lots of areas. The places where we see this impact the most is in parts of Los Angeles, Miami and New York.”
In the Los Angeles luxury real estate market, there was about a 30 percent uptick in Chinese buyers last year alone. What many real estate agents have found is that buyers have children who will be attending school or college in these areas, so it makes sense for them to purchase a place where they can live or their children can live while they are studying.
According to real estate experts, more than half of Chinese buyers who are interested in U.S. real estate purchase in California. Down in Southern California, one developer has created a housing development that caters to the feng shui elements that are important to Chinese buyers. Emile Haddad’s development in Irvine is filled with feng shui elements right down to the street names.
He said: “We have done feng shui on everything we have. We also have a consultant who looked even at street names when we named the streets. We want to make sure the names of the streets are appropriate in terms of either superstition or in terms of simple pronunciation.”
Experts say that while Chinese buyers are prevalent in California markets, there are buyers from close to 70 countries who have put their faith and money in the U.S. real estate market. Most of them pay cash for their transactions, which has helped buyers in the Los Angeles luxury real estate market as competition has heated up. And with most domestic buyers using traditional loan channels to purchase, international buyers with cash-lined pockets are often very attractive to sellers.
In Los Angeles, international buyers are plentiful in places like the Beverly Hills luxury real estate market. They are looking for a “trophy home,” so to speak, and believe that bigger is better in many cases.
To learn more about Los Angeles luxury home buying opportunities, please contact our local team of luxury property experts. We specialize in Los Angeles luxury real estate and would love to assist you with your search.
Homes in Los Angeles, California between $5,000,000 and $7,000,000
$5,000,000 : 1951 HILLCREST Road, Los Angeles5 beds, 5 baths
$5,000,000 : 1 W CENTURY Drive #26D, Los Angeles2 beds, 3 baths
$5,000,000 : 2815 NICHOLS CANYON Road, Los Angeles5 beds, 7 baths
$5,100,000 : 10450 WILKINS Avenue, Los Angeles5 beds, 5 baths
$5,149,000 : 10800 WILSHIRE Boulevard #1503, Los Angeles3 beds, 4 baths
See all City of Los Angeles Luxury Homes For Sale.
(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.