More quick takes from the National Association of Realtors Conference and Expo:
The international exhibitor area is practically empty, a shadow of past years. “Way down,” said one veteran attendee, scanning the collection of a dozen small booths.
“It’s like we’re the lonely hearts club,” said one exhibitor.
But the paltry collection of booths turned into a hive of activity once networking sessions began, bringing representatives of different countries to a cluster of tables in the center of the area.
 Networking on the show floor |
There are more than 1,200 international attendees from 52 countries in attendance, filling the halls and bathrooms and snack stands. They are everywhere at the show, eager to talk business.
But clearly the international projects chose not to exhibit, which might be easily dismissed as a sign of the economic times. But it also represents a subtle shift of the tides, at least for the short term (and at least for the convention game). Developers clearly believe Americans are not buying overseas right now. They want to meet U.S. agents, shake their hands and offer some promotional materials, but they are hesitant to spend money to market to them, until there is evidence of solid economic recovery.
But overseas interest in United States property continues to rise, fueled by currency exchange rates, low prices and instability in their home markets. Clearly many of the throng of international visitors attended NAR to educate themselves about the U.S., not to pitch resort property.
Agents in Florida, for example, are talking about a new influx of South American buyers. In some areas, Columbians, Brazilians and, particularly, Venezuelans are replacing Brits as the primary international buyers. Venezuela president Hugo Chavez is practically pushing people out of the country,” one agent said.
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“Trust me, there are going to be a lot more Chinese investors over here,” said Paul Brewbaker of TZ Economics in Hawaii. He joked that in 2018 we might be looking at “the Chinese bubble.”
In his talk focused on global economies, Brewbaker noted that the recession of the last year didn’t end the trends sweeping up world economies affecting the industry two years ago. “Emerging markets high end growth did not end with the recession,” he said.
 T.J. Hooker meets his fans |
Brewbaker stressed that agents need to be aware that international investors face a different economic formula than typical buyers. Not only are they exposed to real estate cycles, which are inevitable, they also face the realities of currency fluctuations and any discussion of long-term yields must consider both, he said.
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Tidbits: The 20 countries of the Arab union have reportedly joined ICREA, the International Consortium of Real Estate Associations, which would be a big step for both the organization and the Arab countries, which are eager to convince international buyers their real estate practices conform to standard practices.
Thirty-nine percent of the Orlando, Florida-based Real Estate Channel’s traffic is international, according to founder and c.e.o. Michael Gerrity.
The big draw on the show floor was the chance to get an autograph from William Shatner, who might have taken the opportunity to pitch inter-galactic real estate opportunities. However, a quick and unscientific survey found most Realtors know him as Denny Crane, not Capt. James Kirk. (And no one brought up T.J. Hooker.)
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