A record number of foreign buyers purchased U.S. residential real estate between April 2016 and March 2017, according to media reports. Both the number of homes sold and dollar volume surged to their highest levels ever with international buyers preferring property in Florida, California, and Texas.
Foreigners bought a total of USD153 billion worth of U.S. residential properties during the 12 months up to March of this year, according to the National Association of Realtors. This had 49% increase from the same period last year and surpasses the record set in 2015.
Foreign sales were 10% of all existing home sales in the U.S. by dollar volume and 5% by number of properties, reports CNBC. Buyers from outside the country purchased 284,455 homes in the country, a jump of 32% when compared to the previous year.
Chinese buyers purchased the most U.S. residential properties again. This is the 4th straight year they have held this distinction. They were followed by buyers from Canada, the United Kingdom, Mexico, and India. It was noted that buyers from China were now acquiring property in Texas.
“The environment is much more Asian-friendly than it used to be with churches, grocery stores and schools that cater to their tastes. I have been told they target good schools and newer homes. Yards are not a high priority, but rather community parks,” says Laura Barnett, a Dallas-Fort Worth area Re/Max agent, to CNBC.
California Real Estate Pic via nzbzd.com
A reason why Chinese buyers targeted Texas is a drop in purchasing power. Usually property buyers from China prefer California but tightened capital outflow regulations implemented by the country’s government may have priced them out of the market.
“Stricter foreign government regulations and the current uncertainty on policy surrounding U.S. immigration and international trade policy could very well lead to a slowdown in foreign investment,” says Lawrence Yun, Chief Economist for the National Association of Realtors.
Featured Image: cnbc.com
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