Out-of-State Buyers: Where Do They Come From?

by Ron LaMee on August 21, 2014

Some recent Cromford Report posts provide revealing information about where out-of-state buyers for Maricopa and Pinal properties are arriving from.  The top ten sources of buyers and their reason for buying  the property are:

Source Investment Primary Residence Second Home
  1. Calgary AB
29% 38% 29%
  1. Edmonton AB
36% 37% 27%
  1. Anchorage AK
35% 36% 30%
  1. San Diego CA
75% 11% 14%
  1. Winnipeg MB
37% 32% 31%
  1. Seattle WA
45% 26% 29%
  1. Omaha NE
27% 27% 36%
  1. Colorado Springs CO
26% 41% 33%
  1. Chicago IL
26% 35% 39%
  1. Denver CO
66% 15% 19%

 

Source: The Cromford Report, used by permission

moving-in-montageEven though ARMLS is the largest and most active market area in the state, it is likely that sources of out-of-state buyers will vary greatly in other parts of Arizona.  This information has been drawn by Cromford from Affidavits of Value filed since May 2012.  Mike Orr, manager and analyst for the Cromford Report (http:/www.cromfordreport.com/), notes that compiling this information isn’t an exact science in that buyers are somewhat inconsistent in entering where they had been living.

Mr. Orr points out that Albertans and people from inland northwestern U.S. appear to be buying homes primarily for themselves to live in while most buyers from the west coast (California and British Columbia) are primarily investors.  With the notable exception of San Diego, the top ten sources tend to have cold winter weather, which makes escaping cold temperatures a likely reason for purchase.  However, it is striking that buyers from both San Diego and Denver are primarily investors and are lowest on the list of those indicating they intend to make Arizona their home.

Agents know that investors and potential residents evaluate properties differently, so it is important for this topic to come up early in any discussion.  Primary or second home buyers will be more interested in intangibles and livability, while investors are looking to make a good return on their purchase. Since higher-end properties generally take more time and resources to sell, they aren’t favored by investors.  That may not be as much of a concern for a homeowner looking for the right property.

What is your experience with out-of-state buyers?  Post on the blog or email me at ronlamee@aaronline.com.

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