Foreign buyers are continuing their recent surge in purchasing properties in the United States, according to the National Association of Realtors’ 2011 profile of international home buying activity.
As of March 2011, total residential international sales in the U.S were $82 billion this year, $16 billion more than 2010. The split between non-resident foreigners and recent immigrants was even, while combined total domestic and international existing home sales in the nation was $1.07 trillion.
“The U.S. has always been a desirable place to own property and a profitable investment,” said Ron Phipps, NAR president and broker-president of Phipps Realty. “In recent years, we have seen more and more foreign buyers coming here to take advantage of low prices and plentiful inventory.”
NAR said the main reasons why foreign buyers are attracted to homes in this country are because they are less expensive, they provide a secure investment and the U.S. market offers rental opportunities and long-term appreciation potential.
Recent international buyers have come from 70 different countries, an increase from 53 countries last year.
For the fourth straight year, Canadians (23%) were the top purchasers of U.S. properties. China was the second most popular country of origin, with 9%, followed by Mexico, the United Kingdom and India which all tied for third with 7%.
The average price an international buyer paid for a property was $315,000. The national average for a home is currently $218,000. However, NAR said 45% of international buyers’ purchases were under $200,000.
NAR said 61% of foreign buyers purchased single-family homes, while 36% bought a condominium, apartment or townhouse. At the same time, 62% of the purchases were reported as being all cash.
“Besides the strength of the dollar and the general economic trends in the U.S., international buyers are also recognizing the benefits of home ownership in this country, especially in the case of recent immigrants,” Phipps said. “Many foreigners perceive owning a home here as an important accomplishment in their efforts to become established in this country.”
