Overseas buyers scooped up $92.2 billion of U.S.
real estate last year, driven mainly by wealthy Chinese looking for a safe
haven for their families and fortunes.
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According to a new report from the National
Association of Realtors, sales activity from international buyers surged 35
percent in the 12 months ended in March. While international buyers represent
only 7 percent of total existing-home sales nationally over the period, their
buying is highly focused on high-end homes in Florida, California, Texas and
Arizona.
"Foreign purchasers are interested in U.S. real
estate for a variety of reasons: as a place to live for those relocating in the
U.S., for a job or for children going to college, for investment and portfolio
diversification, and for vacation purposes," according to the NAR report.
Buyers from five countries accounted for over half
of international transactions, the report said. Chinese buyers were far and
away the largest foreign buyers measured by dollar volume. Sales to Chinese
buyers jumped 72 percent over the 12-month period to $22 billion.
Chinese buyers now account for 24 percent of all
sales made to overseas buyers, measured by dollar volume. Canada ranked a
distant second as a source of foreign buyers with $13.8 billion in deals,
followed by the United Kingdom and India, each with $5.8 billion.
A handful of states accounted for the bulk of the
purchases. Florida attracted 23 percent of international deals, followed by
California with 14 percent, Texas with 12 percent and Arizona with 6 percent.
Overseas buyers tend to pay all cash and prefer
higher-end homes. Fully 60 percent of all purchases by foreign buyers were by
cash, up from a third in 2007.
The mean price for sales to international buyers was
$396,180 for the 12 month period, compared with $247,417 for all U.S.
existing-home sales. Over a third of homes sold to international buyers were
for more than $500,000.
I think the “key”
here is the fact these foreigners pay CASH.
And, while receiving interest payments is still financially lucrative,
sellers with all the money upfront can invest the money in other ventures
without having to wait. These foreigners
make IDEAL BUYERS… and soon, America
will no longer belong to Americans…
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