Foreign buyers target real estate in the USA
As the US property market starts to recover, buyers from overseas are again turning to American homes. The National Association of Realtors (NAR) report that investors are targeting properties in Florida, Arizona, Texas, and Southern California, with the four states taking over half of all foreign buyer purchases.
Keep reading to learn more about where overseas buyers are snapping up homes in the US.
Nearly half of overseas buyers are snapping up property worth under £156,000
According to NAR figures, these four states took a 51 per cent share of the foreign buyer market – with Florida taking 26 per cent, California 11 per cent and the other two 7 per cent each.
Canadians are the most prevalent buyers of American homes, while buyers from China, Mexico, India, and Britain make up 55 per cent of international buyers.
Home sales to foreign buyers totalled $82.5 billion (£51.5 billion) for the year ending March 2012, up from $66.4 billion (£41.5 billion) in 2011. Total international sales were evenly split between non-resident foreigners and recent immigrants, says the NAR.
NAR President Moe Veissi said: “Today’s advantageous market conditions have drawn more and more foreign buyers to the U.S. in recent years, signalling how desirable and profitable owning property in this country can be.
“Low housing prices, a good inventory condition and increased buying power with today’s exchange rates help attract international clients.”
The NAR reports that around 45 per cent of international home purchases were for less than $250,000 (£156,110). However, the average price paid by an international buyer was $400,000 (£249,550) compared to the overall US average of $212,000 (£132,385).
“Foreign buyers recognise that owning a home in the US has many benefits, both financial and social,” said Veissi.
“Many purchase property as an investment, vacation home, or to diversify their portfolio. In addition, many recent immigrants view homeownership as an important accomplishment. They believe that being a homeowner is one of many ways they become established in the US and attain stability, security, and a sense of community.”