Many people, particularly sellers, believe that the buyers for their megabucks homes will come from overseas. They also hope that these foreign purchasers will be willing to overpay for the homes. However, the statistics below provide a lot of interesting information, as opposed to mere hope.
During the 2015 calendar year, there were 37 sales at 20+ million in Los Angeles County. Here is the breakdown as to the nationality of the buyers:
- 29 of the sales were Americans – 78.2%
- 4 were Chinese – 11%
- 2 were Western European – 5.4%
- 1 was Middle Eastern – 2.7%
- 1 was Canadian – 2.7%
Additionally, in Miami-Dade, there were 10 sales of homes listed at 20+ million in 2015 and Americans purchased all ten.
What do you think about these numbers? In my opinion, this makes for a very strong national market. The data clearly reflects that the overwhelming percentage of the ultra-high-net-worth individuals purchasing homes for 20+ million are homegrown.
Let’s see what 2016 brings, but I believe that our market will remain predominately American.