SEATTLE NEWS ARCHIVES & FEATURES
Foreign buyers still find U.S. properties appealing
May 19, 2011, 7:02 AM | Updated: Mar 4, 2016, 6:00 am
The U.S. continues to remain a top destination for foreign buyers as international purchases surged by $16 billion this year one of the highest increases in recent years, according to the National Association of Realtors’ 2011 Profile of International Home Buying Activity.
Total residential international sales in the U.S. for the past year ending March 2011 equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international existing-home sales in the U.S. were $1.07 trillion, according to the survey.
Historically, foreign buyers have been attracted to property ownership in the U.S. for a number of reasons. U.S. homes are generally less expensive than comparable foreign properties, homes in this country are viewed as a secure investment, and the U.S. market offers rental opportunities and long-term appreciation potential, according to NAR.
The study suggested new reasons for foreign investment. U.S. colleges and universities have a significant number of international students, and some foreign families are purchasing U.S. properties in college areas so their child has a place to live. Another source of international demand is foreign executives temporarily working in the U.S., some of whom prefer to purchase a residence instead of renting.
Recent international buyers came from 70 different countries, up from 53 countries in 2010. For the fourth consecutive year, Canada was the top country of origin, with 23 percent of sales to foreigners.
China was the second most popular country of origin, with nine percent of international sales this year. Tied for third were Mexico, the U.K., and India. Argentina and Brazil combined reported an increase in foreign sales with five percent, up from two percent in 2010. The top five countries of origin accounted for 53 percent of international transactions in 2011.
The average price paid by an international buyer was $315,000 compared to the overall U.S. average of $218,000, the survey revealed. However, 45 percent of international purchases were under $200,000. This price segment has grown significantly over the years, most likely due to overall price declines in the U.S. as well as the strengthening of some foreign currencies.
