The number of sales to foreign buyers rose once again over
the past year, although international buyers are shifting their preferences from
luxury homes to less-pricey properties.
NAR (National Association or Realtors) economists think the
change in the price of homes international buyers are after may be due to
overall higher home prices, along with a stronger U.S. dollar, which both cost
foreign buyers more these days.
“Weaker economic growth throughout the world, devalued
foreign currencies and financial market turbulence” all had an impact on
foreign buyers over the past year, said Lawrence Yun, NAR’s chief
economist. “While these obstacles led to a cool down in sales from
nonresident foreign buyers, the purchases by recent immigrant foreigners rose,
resulting in the overall sales dollar volume still being the second highest
since 2009.”
Foreign buyers purchased $102.6 billion of residential
property in the U.S. between April 2015 and March 2016, according to NAR’s
report. The number of properties purchased rose 2.8 percent to 214,885. The value of
homes bought by foreigners was typically higher than the median price of all
U.S. homes.
Experts say a slight drop in dollar volume is due to the
types of properties purchased, and the locations of those properties. There are signs that foreign
buyers have begun looking beyond higher-priced markets like San Francisco and
New York to purchase properties in smaller, less-expensive cities in the
Southeast and Midwest.
Chinese purchasers continued to outpace all others, with
their dollar volume exceeding the total of the next four ranked countries
combined. Their dollar volume of sales, at $27.3 billion, was three times as
much as Canadian buyers, who were ranked second. Chinese buyers also bought the
most expensive homes at a median price of $542,084.
Five states accounted for half of foreign buyer purchases,
according to the NAR report: Florida, (22 percent), California (15 percent),
Texas (10 percent), Arizona and New York (each at 4 percent).
It is interesting to note that California is home to about 25% of all of the foreign-born population of the US. Florida has only 9% of the foreign-born population of the US, as shown on the graph below:
Thank you for reading,
Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current
mortgage rates
A worthy local non-profit to remember:
Community Services Agency in Mountain View.
