According to the 2010 NAR Profile of International Home Buying Activity, the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery continue to drive international interest in owning a home in this country.
The survey results, which include data from between April 1, 2009, and March 31, 2010, concur with this statement.
KEY POINTS OF SURVEY:
$66 billion of U.S. residential property, or 7% of the residential market, was purchased by foreign buyers (those with residency outside the U.S., recent immigrants, and temporary visa holders);
28% of Realtors® reported working with at least one international client in the past year, up from 23% from the 2009 report;
International buyers came from 53 different countries around the world; the top four countries were Canada, Mexico, the U.K., and China/Hong Kong;
Two factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation;
Florida, California, Arizona, and Texas account for 53% of purchases;
The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009’s median price of $247,100;
16% of the total international purchases were for homes priced at more than $500,000 (According to REALTORS®, international buyers are typically looking for a second home);
66% purchased single-family detached homes;
More international buyers purchased a condo than did their U.S. counterparts, at 23% and 7%, respectively; and
55% of foreign buyers paid in cash. Realtors® reported that a majority of international buyers use all cash because of the diffi culty in establishing international credit in the U.S.