Sold! Foreign Buyers Purchased $92 Billion Worth Of U.S Homes Last Year
A whopping $92.2 billion worth of real estate in the United States was purchased last year by foreign buyers from April 2013 to March 2014, according to a new report from the National Association of Realtors.
This marked a 35 percent increase from the previous period. According to the report, international buyers tended to go for higher-priced homes, with the mean purchase price of international clients totaling $396 million, reports Business Insider. Florida saw the most (23 percent) home buys by foreigners. Canadians, followed by the Chinese, were tops buyers of homes in the U.S. Canada was the biggest buyer when looking at transaction volume; China however was the largest buyer in dollar volume.
Sales from Chinese buyers climbed to $22 billion, a major increase from $12.8 billion the previous period. Canadians buys amounted to $13.8 billion, compared with $11.8 billion the previous year. Chinese buyers bought homes in the more expensive markets of New York, California, and Washington; Canadians meanwhile went for property in lower-priced markets such as Florida and Arizona.
“International buying activity apparently was bolstered by continued rising affluence in China, Canada, India, Mexico, and the United Kingdom,” according to the report. Those five countries accounted for 54 percent of real estate purchases. Most purchases by foreign buyers were usually cash purchases.
Overall homes sales were up in 2013. According to the National Association of Realtors, existing-home sales inched up with sales for all of 2013 being the highest since 2006. Total existing-home sales (single-family homes, townhomes, condominiums and co-ops) equaled 5.09 million sales, which is 9.1 percent higher than 2012, reports Realtor.