2014 Profile of International Home Buying Activity Summary of Report at Lawrence Yun, Senior Vice President & Chief Economist Jed Smith, Managing Director, Quantitative Research Gay Cororaton, Research Economist

Dollar Volume Sales to International Buyers Approximately 7 Percent of Total Market Dollars Increases in 2014 Due to Rising Prices and Volumes

Sales to Foreigners: Modest Growth Approximately 5 percent of Total Residential Transactions

International Buyers: 7% of $1.2 Trillion Market Five Countries: 54 Percent of Total International Sales

Canada Leads in Number of Transactions China Leads in Dollar Volume Canada: $13.8 Billion; China: $22 Billion

Transactions Concentrated in Four States Percent of Total Foreign Transactions by State

Foreign Purchasers: Geographic Preferences Canadians: Las Vegas, Detroit, Los Angeles, Ft. Lauderdale, Miami, Orlando Chinese: Los Angeles, San Francisco, Irvine, New York, Las Vegas

Foreign Purchasers: Geographic Preferences Indians: Los Angeles, Las Vegas, Chicago, Dallas, New York U.K.: Los Angeles, Orlando, Houston, Las Vegas, Kissimmee

Florida Popular with Latin Americans, Canadians, and Europeans

California: Popular with Asians and Canadians

Arizona: Particularly Popular with Canadians

Texas: Popular with Latin Americans, Particularly Mexicans

Foreign Sales Tend to be at Higher End of Market

Prices Paid by Buyers Vary by Country of Origin

Cash Sales Are in the Majority

Foreigners Buy for a Variety of Reasons

Not All Potential Foreign Clients Purchase a House Foreigners Don’t Buy for a Variety of Reasons

International Sales Tend to be Concentrated in Real Estate Practices

Transactions Tend to be Concentrated in Specialists 28 Percent of REALTORS® Have More than 10 Percent of Their Business with International Clients

REALTORS® Have Both Resident and Non-Resident Clients

Steady Net Growth in Number of Clients

2014 Profile of International Home Buying Activity Major Conclusions International Sales a Niche Market. – 7 Percent of total U.S. Home Sales by Dollar Volume. – Slow Growth/Varies from Year to Year. – Specialized Experience in Serving Buy-Side Important: Knowledge of language, customs, culture necessary in serving clients. A Concentrated Market. – States: 55 percent of Transactions Concentrated in Florida, California, Texas, and Arizona. – Countries: 54 percent of Transactions by Nationals from Canada China, India, Mexico, U.K. International Buyers are Diverse. – Motivations include investment, personal use (permanent or vacation), asset diversification. International Buyers Need Assistance. – U.S. real estate Practices Differ from Foreign Practices – Cultural as Well as Day-to-Day Differences Between U.S. and Other Countries. Sources of Clients – Generally Through Referral. – Websites Also a Source.