Global Buyers [Or the Lack Thereof} on the Monterey Peninsula
Where do our buyers come from?
People ask me all the time where my buyers come from, assuming we have a large number from Asia or Europe. And not to mention, every real estate firm out there will wow you with their international sphere of influence. But the truth is, your buyer is most likely from around the corner.
First and foremost, I should stress that Carmel Realty puts a strong emphasis on our international exposure. We are a Board of Regents member with Luxury Real Estate, and partners with both Mayfair International out of London and Pacific Union in the San Francisco Bay Area. Combined, we have a presence in over 200 countries, access to a network of real estate professionals that sell over $125B annually and key placement in global publications such as the Financial Times and Wall Street Journal. While I'll be the first to admit this absolutely increases the publicity we give each listing, the reality is, your buyer is more likely to be local than from abroad.
According to Leslie Appleton-Young, California Association of Real Estate's Chief Economist, international demand is down to the lowest levels in 9 years. Only 3% of the sales in California last year were international buyers. Of these, 31% were from China, 6% from Mexico and 9% from India. Of the 632 Sales in Carmel and Pebble Beach in 2017, 83% of our buyers were from the San Francisco Bay Area and 12% came from out of state.
What about the high-end of the market?
Many feel that international buyers are more prevalent in the high-end market. In 2017, there was only one sale over $10M and the buyer came all the way from San Jose, California! Of the last 6 sales over $20M in our area, every buyer was American, two from as far away as the East Coast. The high-end markets are flat across the globe and the limited buyers we do have in this price segment are coming from within the US.
It's important to understand where our buyers are coming from to effectively target the right demographic. Our greatest gain in the international relationships we do have is knowledge. By collaborating with our colleagues across the globe, we become stronger locally. But when it comes to actually finding a buyer, it's important to look closer to home.
Here is some supporting data provided by one of our brokers, George Fusco. He took a close look at sales data between June 1, 2017 - June 1, 2018.
- There were NO sales to Buyers outside the United States in the past year for $1.5M and up in Carmel or Pebble Beach.
- Of the 16 sales over $5M in Pebble Beach, half of those buyers came from the San Francisco Bay Area.
- Of the 56 sales between $1.5-$5M in Pebble Beach, 20 were from the San Francisco Bay Area, 5 from Southern California, 5 from Texas, 9 from out of State but within the US and the other 17 from various areas in California.
- Of the 29 sales in Carmel over $4M, 11 of the buyers were from the San Francisco Bay Area, 5 from the greater LA area and the other 13 from within the US.
- Of the 130 sales in Carmel between $1.5-$4M, 57 of these buyers were from the San Francisco Bay Area, 9 from Texas and 67 from other areas within the US.
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