International Investors Buy Homes In San Diego

Why San Diego real estate? It’s simple. When compared to other major cities around the world, San Diego real estate prices are shockingly low.  San Diego homes are now more affordable than homes in Toronto, Shanghai, Hong Kong, Tokyo, and many other major cities around the world.  Yet the San Diego weather is arguably the best in the world, the economy is very strong, and the quality of life is amazing.  The city is clean, fun, relaxed, friendly, safe, and on the ocean.  San Diego homes are in stark contrast to the hustle and bustle, bitter cold, scorching heat, and pollution that exist in other parts of the world.

International Real Estate Investments in the United States

According to Point2, California real estate is one of the top 4 U.S. states considered by international home buyers as measured by volume of online search traffic.  International real estate investors concentrate on Florida, Arizona, Nevada, and California.

Canadians Buying U.S. Real Estate

Canadian real estate investment in the United States focuses on Arizona, Hawaii, Michigan, and California.  Michigan’s proximity to Toronto explains that state’s big draw from California.  And Hawaii is in its own world.  So Canadian home buyers looking for warmer weather in the United States are now looking to Arizona and California first, and to Florida third.  Many Canadians buy homes in San Diego.

There are no legal restrictions on purchases of U.S. real estate by international buyers. However, International purchases of real estate in the United States raise financing issues for some buyers.  Home loans for non-U.S. residents are available, subject to special guidelines.  A U.S. credit score is required for home loans from most U.S. banks, and many foreign buyers don’t have U.S. credit scores.  When financing issues arise, there are solutions.

U.S. Home Loans for Non-U.S. Citizens

Home loans are available to for non-U.S. citizens looking to buy property in the United States. Morgan Stanley Smith Barney and several other firms offer asset-backed home loans to non-U.S. citizens.  Financial advisers and private mortgage bankers at the major investment firms are great at working with non-U.S. home buyers to find financing solutions.  Portfolio lenders such as BBVA Compass Bank offer home loans to Non-U.S. citizens looking to buy or refinance U.S. real estate. These portfolio lenders have greater flexibility because they don’t have to underwrite their loans to the rigid standards of secondary “investors” (banks).  Of course, many international real estate investors are able to pay cash for their U.S. real estate investments, so home loans are not always an issue.

With San Diego real estate prices way down and interest rates at historic lows, international buyers are moving on the opportunity to buy homes in San Diego and throughout the United States.  This is an important perspective that U.S. residents should keep in mind. When the international investors come out in force to buy real estate, it generally means that investment returns are on the horizon.

For more information about investing in San Diego real estate, call Geoffrey Schiering at (619) 200-7612.

Moving against the tide in the San Diego real estate, Keller Williams Carmel Valley increased San Diego homes sales by 24% in 2011.  The brokerage is betting on continued growth with a million dollar investment in a two-story 10,000 square foot office building at the corner of High Bluff and Del Mar Heights Road in Carmel Valley, zip code 92130.

San Diego, CA – While other San Diego real estate brokers are cutting staff and closing offices, Keller Williams Carmel Valley Realtors are expanding in 2012.  The company is completing a million dollar renovation to the office building on the corner of Del Mar Heights Road, at 12780 High Bluff Drive, San Diego, CA 92130.  The Realtors will be open for business at the new location on February 1, 2012.

The highly upgraded and extremely visible office complex will be home to 198 San Diego real estate agents, and likely more in the near future.  In only six years, Keller Williams Carmel Valley has worked its way from a start-up to a market leader in the North County San Diego real estate market.

“Keller Williams Carmel Valley has grown largely by word of mouth as people hear about the excellent San Diego real estate services that the agents provide.  Now with the new building and signage on the most highly trafficked street in zip code 92130, Keller Williams will become a Carmel Valley real estate icon,” says Realtor Geoffrey Schiering.

San Diego Homes Sales

In 2011 the Keller Williams Carmel Valley Realtors completed 647 sales of homes in San Diego County (433 houses and 214 condominiums and town homes).  This was an increase in volume of 24% over 2010, when the brokerage completed 522 San Diego home sales (321 houses and 201 condos and town homes).  During the same 12-month period, the total volume of San Diego homes sold county-wide actually declined by 2%.

“The San Diego homes sales statistics are a reflection of a larger picture. Keller Williams Realty is growing internationally because the company has an ethical belief system that supports and encourages its agents to build careers worth having and lives worth living. Keller Williams is attracting the best real estate agents in San Diego and in most other markets too,” says Schiering.

Keller Williams is now the second largest real estate brokerage in the United States, and is on track to reach the number one position in the next twelve months. 

It’s no coincidence that the owner of the Keller Williams Carmel Valley office, Chris Heller, has been hired as President of KW Worldwide at Keller Williams Realty International, based in Austin, Texas.  Mr. Heller is charged with expanding the KW franchise to Europe, Asia, Australia, Central America and South America.  And judging by his past success in the San Diego real estate market, the world is going to be seeing a lot of Keller Williams Realty signs with “Sold” signs on top.

About Keller Williams Carmel Valley:  Keller Williams Carmel Valley Realtors provide San Diego real estate services to buyers and sellers of San Diego houses, condos, town homes, and commercial properties. Visit KW online for neighborhood information, market reports, and listings of San Diego homes for sale.

Press Contact:
Geoffrey Schiering

12780 High Bluff, Suite 130

San Diego, CA 92130

realtor@sdrealtypros.com

619-200-7612

San Diego Houses

There were 21,226 San Diego houses sold in the twelve months ending December 29, 2011.  The average sale price for houses in San Diego County was $483,670 for an average three bedroom, two bathroom house with an average of 2,035 square feet of living area.  The average market time was 76 days on market.  Anything less than 90 days is considered a healthy real estate market. The average sale price to list price ratio was 95.6%, so the average buyer is able to negotiate a purchase price only 4.4% below the list price.

San Diego Houses Sold 12 Months Ending December 29, 2011

San Diego Homes Prices

Compare the same twelve month period ending December 29, 2010.  Last year there were 21,143 houses sold, at an average sale price of $516,100 for an average three bedroom, two bathroom house with 2,006 square feet of living area.  So the number of San Diego houses sold in 2011 was up a statistically insignificant 0.4% over the prior year.  The average sale price was down approximately 6%, the average cost per square foot of San Diego houses in 2011 was $234.60 per square foot of living area, as compared to $246.34 per square foot in 2010… a decline of less than 5%.

The number of days required to sell the average San Diego house increased by 10 days, from 66 days in 2009.  However, both the slight decline in sale prices and the slight increase in market times can likely be attributed to an increase in the number of short sales in San Diego between 2010 and 2011.  There were 4,072 houses sold in short sales in 2010 compared to 4,913 San Diego short sales in 2011.  Short sales are sales in which the home seller will net less from the sale of their home than they owe to the bank.  The term Short Sale derives from the fact that the bank is asked to forgive the portion of the loan which the home seller is “short” on funds.  Due to the bank involvement, short sales take significantly longer to complete than traditional sales.  The average number of days on market for short sales of San Diego homes in 2011 was 150 days.

San Diego Houses Sold 12 Months Ending December 29, 2010

Overall there was little change in the San Diego real estate market between 2010 and 2011.  Home buyers are seeing value at current prices, and the number of houses sold in San Diego increased in the past year, with prices down only slightly.  Bargain hunters are snapping up great deals on San Diego short sales.  Moving forward, outlook is very similar for 2012.  With prices down and interest rates low, it’s a great time to buy a home in San Diego.