Foreigners Purchase Record Number of US homes

Written (Edited) by Diana Olick – CNBC.com

  • Foreign buyers closed on $153 billion worth of U.S. residential properties for the 12 months ended in March.
  • That marks a 49 percent jump from 2015-2016, according to the National Association of Realtors.
  • Florida, Texas and California drew the most international buyers.

Video: Foreigners snap up record number of US homes

Foreign purchases of U.S. residential real estate surged to the highest level ever in terms of number of homes sold and dollar volume.

Foreign buyers closed on $153 billion worth of U.S. residential properties between April 2016 and March 2017, a 49 percent jump from the period a year earlier, according to the National Association of Realtors. That surpasses the previous high, set in 2015.

The jump follows a year-earlier retreat and comes as a surprise, given the current strength of the U.S. dollar against most foreign currencies, which makes U.S. housing even more expensive. Apparently, the value of a financial safe-haven is outweighing the rising costs.

Foreign sales accounted for 10 percent of all existing home sales by dollar volume and 5 percent by number of properties. In total, foreign buyers purchased 284,455 homes, up 32 percent from the previous year.

Half of all foreign sales were in just three states: Florida, California and Texas.

Chinese buyers led the pack for the fourth straight year, followed by buyers from Canada, the United Kingdom, Mexico and India. Russian buyers made up barely 1 percent of the purchases.

But the biggest overall surge in sales in the last year came from Canadian buyers, who scooped up $19 billion worth of properties, mostly in Florida. They are also spending more, with the average price of a Canadian-bought home nearly doubling to $561,000.

“There are more [baby] boomers now than ever before. It’s the demographic,” said Elli Davis, a real estate agent in Toronto who said she is seeing more older buyers downsize their primary home and purchase a second or third home in Florida. “The real estate here is worth so much more money. They all have more money. They’re selling the big city houses that are now $2 million-plus, where they went up so much in the last 10 to 15 years, so they’re cashing in.”

Despite the anti-immigrant rhetoric from the Trump administration, especially about building a wall between the U.S. and Mexico, nonresident buyers from Mexico were undeterred. Mexican buyers nearly doubled their purchases by dollar volume from a year earlier, coming in third behind China and Canada.

“You could easily make the point that perhaps their uptick was wanting to buy now before new immigration policy was in place,” said Adam DeSanctis, economic issues media manager at the National Association of Realtors.

In general, though, Mexicans have been buying less expensive homes. The average purchase price of buyers from Mexico came in at about $327,000, compared with the $782,000 average among Chinese buyers and $522,000 for Indian buyers. Mexicans overwhelmingly favored homes in Texas, while Chinese buyers opted more for California and, increasingly, Texas.

“The environment is much more Asian-friendly than it used to be with churches, grocery stores and schools that cater to their tastes,” said Laura Barnett, a Dallas-Fort Worth area Re/Max agent. “I have been told they target good schools and newer homes. Yards are not a high priority, but rather community parks.”

It’s also possible that Chinese buyers are being priced out of California. The average price of a home purchased by a buyer from China fell from about $937,000 to $782,000, even as the number of properties purchased jumped to nearly 41,000 from 29,000. The drop in purchasing power likely stems from tightened regulations in China with regards to capital outflow.

While international interest was quite strong in the second half of last year, it may now be weakening due to tighter regulations in China and weakening currencies in some international markets.

“Stricter foreign government regulations and the current uncertainty on policy surrounding U.S. immigration and international trade policy could very well lead to a slowdown in foreign investment,” said Lawrence Yun, chief economist for the NAR.

Original Source: http://www.cnbc.com/2017/07/18/foreigners-snap-up-record-number-of-us-homes.html

Thank You Gloria

My sister Gloria passed away today…but her spirit is still among us.

She gave love and hope to so many, even some who never had the opportunity to meet her. Through her amazing talent, Gloria inspired and taught young and old about the most important elements of life.

She is now at peace. May she rest in the knowledge of having done great work for others. God bless you Gloria. We love you and will always find meaning in your loving gifts to us. Thank you very much.

Gloria

We are fortunate to be loved by Gloria.

Gloria Kliewer Roe is the most loving, caring and talented individual I’ve ever had the privilege to know. Throughout the challenges known as Life, we shared the most precious elements, love and respect. My sister Gloria dedicated her life of discipline and sacrifice to providing hope, guidance and assistance to others through her amazing artistry.

Continue reading Gloria

2017 will be the year of the condo in Bellevue and Seattle

Developers say they’ll break ground on five — and possibly six — big condo projects next year.

The buildings will range from six to 40 stories, and all but one of the developers are from China or Canada. The one developer who says he’s still weighing whether to build a for-rent or for-sale project is domestic.

Continue reading 2017 will be the year of the condo in Bellevue and Seattle

Real Estate Flipping Profits Rising

Number of investors flipping homes returns to pre-crisis levels; big banks get back in the game.

House flipping, a potent symbol of the real-estate market’s excess in the run-up to the financial crisis, is once again becoming hot, fueled by a combination of skyrocketing home prices, venture-backed startups and Wall Street cash.

Continue reading Real Estate Flipping Profits Rising

Chinese Billionaire Moving Manufacturing to the U.S. to Cut Costs

While it has been said for a long time that the U.S. is bleeding manufacturing jobs overseas, particularly to China, some businesses have been moving operations the other way round.

And now, the head of a leading Chinese glass maker making the same move has openly questioned if his country really is such a lucrative destination for offshore factories, reports Hong Kong newspaper the South China Morning Post.

Overall speaking, the tax burden for manufacturers in China is 35% higher than in the U.S., Cao Dewang told China Business Network. He added that a combination of cheap land, reasonable energy prices and other incentives means that, despite higher manufacturing costs, he can still make more money by making glass in the U.S. than by exporting Chinese-made panes to the U.S. market.

© Wang Zhou-Imaginechina
Cao Dewang, center, Chairman of Fuyao Group and Chairman of Fuyao Glass Industry Group Co., is interviewed as he arrives at the Great Hall of the People to attend the opening session for the Fourth Session of the 12th National Committee of the CPPCC (Chinese People’s Political Consultative Conference) in Beijing, China, 3 March 2016.

His company, Fuyao Glass, has invested over $1 billion stateside, according to the Post, the most significant move of which is opening its U.S. factory in the Ohio town of Moraine, a suburb of Dayton, back in October. The glass maker is re-purposing the town’s former General Motors assembly that had been standing empty since late 2008, as the Dayton Daily News reports.

According to Ohio TV station WDTN, the plant now employs a workforce of almost 2,000, and Cao expects that the fully operational facility will employ up to 3,000 workers.

Wage and transportation costs are getting higher in China, Cao says. Compared with four years ago, labor wages [in China] today have tripled, he told China Business Network. Meanwhile, transportation in the U.S. costs the equivalent of less than one yuan ($) per kilometer, while road tolls [in China] are higher, he added, pointing out that some mid- and small-sized Chinese enterprises have already started moving to Southeast Asian countries like Vietnam and Cambodia for cheaper wages and materials.

Fuyao is not the first Chinese business making the move across the Pacific in recent years. According to the Wall Street Journal, Chinese companies invested over $20 billion in the U.S. last year -from a practically nonexistent total investment back in 2006.

And yet, it would probably be mistaken to write off the world’s second largest economy as a manufacturing powerhouse once and for all. As Fortune reported in early December, the latest data indicates that China’s manufacturing sector is in its strongest position in some years, buttressing the country’s economic growth along the way.

Written by Kevin Lui –  Fortune.com – December 22, 2016

Original Source: http://fortune.com/2016/12/22/us-china-manufacturing-costs-investment/

Trump Improving Chinese – American Relations

Chinese state-run media lauded Donald Trump Tuesday after a phone call between him and President Xi Jinping, saying that the president-elect’s emergence could mark a “reshaping” of Sino-American relations. The pair spoke Monday, when Xi said that the two powers needed to co-operate and Trump’s office said the leaders “established a clear sense of mutual respect for one another”.

On the campaign trail Trump frequently demonized Beijing, but questions have been asked whether his conduct in the White House will match his promises as a candidate. Monday’s conversation was “diplomatically impeccable and has bolstered optimism over bilateral relations in the next four years”, China’s frequently nationalistic Global Times newspaper said in an editorial. Barack Obama, whose foreign policy pivot to Asia alarmed Beijing, was “profoundly affected” by the Cold War-shaped outlook of American elites, the paper said, but Trump’s views “have not been kidnapped by Washington’s political elites”. “Trump is probably the very American leader who will make strides in reshaping major-power relations in a pragmatic manner,” it added, saying his ideology and experience “match well with the new era”.

It was a sharp contrast to the same newspaper’s editorial the day before, which baldly warned the incoming president not to follow through on campaign-trail promises to levy steep tariffs on Chinese-made goods or Beijing would take a “tit-for-tat approach” and target US autos, aircraft, soybeans, and iPhones. But the president-elect’s ambiguous and sometimes contradictory views on key questions on the relationship between the world’s two largest economies, including trade, the South China Sea and North Korea, have cast a pall of uncertainty over how he will manage it. While campaigning,

Trump went as far as calling the Asian giant America’s “enemy”, accused it of artificially lowering its currency to boost exports, threatened to impose tariffs of 45 percent, and pledged to stand up to a country he says views the US as a pushover. But he also indicated he is not interested in getting involved in far-off squabbles, and decried the proposed Trans Pacific Partnership (TPP) free trade deal, which encompasses several other Asian countries and has been seen as an effort to bolster US influence, for costing American jobs. TPP has been signed by the US but not ratified by the Senate, where its chances are seen as poor.

Tuesday’s editorial in the government-published China Daily newspaper called the Xi-Trump chat “propitious”, noting that Beijing is “understandably relieved that the exclusive, economically inefficient, politically antagonizing TPP is looking ever less likely to materialize”. Instead, Washington should consider joining the China-backed Regional Comprehensive Economic Partnership (RCEP), a free trade area encompassing the Southeast Asian grouping ASEAN, China, India, Japan, South Korea, Australia and New Zealand. Something of a mirror image to the TPP, it includes six of the putative Washington-led grouping’s 12 members.

Donald Trump has been President Elect for less than a week and everything is already falling into place. Both Canada and Mexico plan to renegotiate NAFTA. Mexico is considering talks about the wall and is preparing for mass deportation. Russia wants to help us destroy ISIS. China thinks our relationships will be better. The UK is very optimistic of relationships with the US. TPP was declared dead. All good things. Meanwhile, our mainstream media still hasn’t accepted the fact that he will be our next president.

The Chinese in general admire strength tempered with respect, protocol and politeness. Donald Trump is well and truly capable of all that.

Source: http://www.commonsenseevaluation.com/2016/11/15/china-says-trump-diplomatically-impeccable-first-contact/#sthash.dd1bgc0K.dpuf

The official authorized Internet site for F D Kliewer and Associates, LLC. Frank is a consultant, artist, innovator, developer, manager, teacher and persistent gardener.