Bloomberg – Foreign buyers have returned to the U.S. real estate market.
Non-US citizens bought $59 billion in homes in the 12 months to March.That’s up 9% from the previous 12 months and the first increase in three years, according to the National Association of Realtors (NAR).
The average price of homes bought by foreigners rose by 18%.To nearly $600,000, that boosted the amount of money raised by the industry, according to NAR, the number of homes sold fell to the lowest level since 2009.
Ranked fourth in the Brazilian Buyers Association rankings. They spent USD 1.6 billion or 3% of the total during the period. The average purchase value of Brazilians is US$ 434.8 thousand. The non-Americans who purchased the most homes during this period were Canadians: 11% of total spending or US$5.5 billion – with an average purchase of US$416,100.
According to the association, 44% of foreign buyers paid in cash, compared to the general average of 24%.
Home prices in the U.S. have soared due to the pandemic. A shortage of properties for sale and low mortgage rates have fueled auction disputes across the country. Lately, the faltering economy and high borrowing costs have kept potential buyers at bay, a sign that the market may be cooling.
“In retrospect, the lack of international buyers in the last couple of years when the market was booming was good,” says Lawrence Yun, chief economist at NAR. “Additional competition will make it even more difficult for potential homebuyers in the U.S. to buy.”
It is interesting to explain how the NAR defines what constitutes a foreign buyer. According to the report, 57% were immigrants who had lived in the U.S. for less than two years or were non-U.S. citizen resident visa holders.
Florida was the top destination for international buyers, accounting for 24% of all international residential transactions.
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