Someone has figured out that US real estate is a real bargain. But that "someone" may not be from the US. From May 2007 to May 2008 it is estimated that between 150,000 and 190,000 US homes were sold to foreign nationals. The combination of the weak dollar and the decrease in home prices has made our real estate look like quite a deal to foreign buyers.
Purchases were made throughout the country, but the most popular states for international buyers were Florida, California, Texas, Arizona, New York, Washington and Nevada. The top six countries of origin for foreign home buyers were Canada, the United Kingdom, Mexico, China, India and Germany. This year, Canada replaced Mexico as the country with the largest share of foreign buyers in the U.S.
Typically, these buyers are looking for a vacation home. Ten percent pay all cash. And they tend to buy more expensive homes. More than 14 percent of properties sold to international buyers sold in excess of $750,000. Foreign buyers also show a greater preference for condos and townhouses compared to domestic buyers.
2 comments:
I wonder how long Canadians will be buying properties in the USA. Our listings continue to outpace sales and the prices are dropping. I am Vancouver realtor and our city is one of the most popular for living in Canada, results in some other areas are worse (for sellers of course). Last year was year of rocketing real estate prices and I am sure this year will bring correction. So Canadians will return to buying their own homes :) However, sunny California or Florida will be attracting us at least for some time more!
Jay
Hi Jay -
My understanding is that most of these sales are for vacation homes. In fact, the data shows that the homes are occupied on average less than 3 months every year. The lure in the US is the combination of low prices and very weak dollar. Hopefully, your correction will not be as deep nor as devastating.
ida
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