The American Dream of owning real estate has gone International according to the 2008 National Association of Realtors® Profile of International Home Buying Activity. Low interest rates, a softer dollar with advantageous exchange rates and an abundance of inventory has lured an influx of international buyers, who recognize real estate as an excellent investment.
The latest report indicates international buying activity in the U.S. is widespread. NAR estimates that between 150,000 and 190,000 homes were sold to foreign nationals from May 2007 to May 2008. Recent foreign buyers purchased properties in every state and the District of Columbia. The most popular states where international buyers purchased homes are Florida, California and Texas. Arizona, New York, Washington and Nevada were also popular.
The typical international real estate buyer purchased a single-family vacation home costing $297,400. Four in 10 paid for their U.S. property with cash, compared with 7 percent for all domestic buyers. The typical international owner stayed at his or her U.S. property for 2.6 months during the year, according to the NAR findings.
International buyers vary in many ways from domestic buyers. They tend to purchase more expensive properties, which cost an average of 36 percent more than the typical domestic buyer’s home purchase. In fact, 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.
People from North America, Europe and Asia accounted for more than 85 percent of recent foreign home buying transactions. The top six countries of origin for foreign home buyers, in rank order, 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. The percentage of Canadian buyers doubled from last year, from 11 percent to 23.5 percent.
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Posted by: Chris | Monday, August 18, 2008 at 02:33 AM
Indeed "The American Dream of owning real estate has gone International"I completely agree wth you, Very informative post!
Posted by: Shane Dallas home loans | Tuesday, August 19, 2008 at 08:27 AM