(07/13/2020) They comprise only a small share of homebuyers in the U.S., but more and
more foreign buyers are coming to America for the homeownership piece of the
dream.
More than a quarter of Realtors, 28 percent, reported working with at
least one international client in the past year, up from 23 percent during
the previous Profile of International Home Buying Activity.
The recently released 2010 study, which queried Realtors for a year
ending in March 2010, found that 18 percent of all Realtors were estimated
to have completed at least one international sale, compared to 12 percent
last year.
Foreigners invested $41 billion in homes in the U.S. during the period, 4
percent of the total $907 billion market. Adding recent immigrants, or
temporary visa holders, pushed the total to $66 billion, or 7 percent of the
market according to the report.
A stronger dollar, desirable U.S. property and the slow, but emerging economic recovery are seen as factors in the
growing demand for an American home.
"While all real estate in the U.S. is local, the same is not true for
property owners," quipped NAR President Vicki Cox Golder, owner of Vicki L.
Cox Real Estate in Tucson, AZ.
"The U.S. continues to be a top destination for international buyers
from all over the world. Foreign buyers understand the value of owning a
home in this country," she added.
The survey found foreigners buying property in 39 states, but a bit more
than half were in just four states: Arizona, California, Florida and Texas. Except for Texas,
they are all states that were hotbed boomtowns during the last big boom.
By larger regions, foreign buyers favored the South (45 percent), over
the West (32 percent), the Midwest (13 percent) and the Northeast (10
percent).
The buyers came from 53 countries, but the largest number was from just
across the borders, Canada, at 23 percent and Mexico at 10 percent. The
United Kingdom added 9 percent; China (including Hong Kong), 8 percent;
Germany together with France, 7 percent; and India, 5 percent, according to
the NAR survey.
More than one in three foreign buyers weren't closers. Thirty four
percent had financing problems, often because tight fisted lenders
weren't willing to lend to those without Social Security numbers.
But money talks. Among those who did close, 55 percent paid cash, compared to only 8
percent of U.S. buyers coming to the table with a full stake.
Other findings:
The median price paid by international buyers was in the neighborhood of
$219,400 during the 2009 to 2010 period. By contrast, the overall median
price for all existing home sales was $173,000 during the same period.
However, nearly half the foreign buyers, 46 percent, paid $200,000 or less
during the period.
Most foreign buyers, 66 percent, purchased a detached single-family home,
compared to 23 percent buying a condo, 8 percent a townhouse and 3 percent
commercial property.
Suburban areas were most popular, chosen 50 percent of the time over
urban areas (27 percent), resort areas (14 percent), and rural or small town
areas (9 percent).
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