The National Association of Realtors reported that Chinese investors were the most active U.S. real estate purchasers among foreigners last year, as they spent a record $6.1 billion on homes, primarily in California and Florida.
Spending an average transaction of $1 million per home, buyers from China, Taiwan, and Hong Kong scooped up existing homes across the U.S., with approximately a third of the purchases occurring in California.
Canada came in just behind China, with Canadians spending roughly $5.5 billion on U.S. residential properties from April of last year to March of this year.
India ($3.6 billion), Mexico ($2.9 billion), and Brazil ($1.6 billion) were numbers three, four, and five on the list, respectively.
Florida had the heaviest volume of transactions looking at all foreign investors, according the the National Association of Realtors. It was the fourteenth consecutive year Florida had taken that top spot in the analysis.
Among all international real estate purchases, Florida accounted for 24%, while California came in second at 11%. Texas was responsible for 8% of foreign real estate transactions, Arizona accounted for 7%, and New York and North Carolina both had 4%.
Foreign buyers spent a total of $59 billion purchasing 98,600 existing homes in the US. It was an increase of 8.5% from the previous 12 months. 44% of the purchases were all-cash sales, which is double the normal rate for existing home buyers.
Foreign based investors made all-cash purchases twice as often as resident foreign buyers.
Six in ten Chinese buyers made all cash purchasers, while 69% of Canadian buyers made all-cash purchases. About 25% of Mexican and Brazilian buyers were all cash buyers as well.
44% of foreign buyers said they purchased the homes as vacation homes, rentals, or both.
NAR Chief Economist Lawrence Yun said, “Due to rising interest rates, overall home sales will decline in the US this year. Foreign buyers, however, are likely to step up purchases, as those making all-cash offers will be immune from changes in interest rates.” He went on, “In addition, international flights have increased in recent months with the lifting of pandemic-related travel restrictions.”
