Foreign buyers spent USD 42 billion on U.S. homes between April 2023 and March 2024, a 21.2% drop from the previous year, with 54,300 properties purchased-36% fewer than the prior period. The decrease is attributed to the strong U.S. dollar and rising home prices. Chinese buyers led in dollar volume, while Florida remained the top destination. Half of all international sales were all-cash transactions, with Canadians and Chinese buyers most likely to pay in cash.
A recent report from the National Association of Realtors (NAR) reveals that foreign buyers spent USD 42 billion on U.S. existing homes between April 2023 and March 2024, a 21.2% drop compared to the previous year. During this time, 54,300 properties were purchased by international buyers, a 36% decrease and the lowest level since NAR began tracking in 2009. Overall, U.S. home sales totalled 4.09 million in 2023, an 18.7% decline from 2022, marking the lowest since 1995. NAR Chief Economist Lawrence Yun attributed this to the strong U.S. dollar, which raises the cost of U.S. homes for foreign buyers.
The National Association of Realtors' 2024 report on international transactions in U.S. residential real estate found that foreign buyers living in the U.S., including recent immigrants and visa holders, spent USD 22.6 billion on homes, a 3.4% decrease from the previous year, accounting for 54% of international purchases. Foreign buyers living abroad spent USD 19.4 billion, a 35% drop, representing 46% of the total. Overall, international buyers made up only 2% of the USD 2.1 trillion in U.S. home sales. NAR's Lawrence Yun noted that both American and foreign buyers struggled with low housing inventory and rising prices, with international buyers' average home prices reaching USD 780,300 and the median at USD 475,000, both record highs.
These figures highlight rising home prices in the U.S., with the average price reaching USD 392,600. Chinese buyers had the highest average purchase price at USD 1.3 million, with 25% of their purchases in California. Overall, 18% of international buyers bought homes valued at over USD 1 million. Canada had the highest share of foreign buyers at 13%, followed by China and Mexico at 11% each, and India at 10%. In terms of dollar volume, Chinese buyers led, spending USD 7.5 billion on U.S. real estate, a trend since 2013. Other top countries by purchase volume included Canada (USD 5.9 billion), India (USD 4.1 billion), Mexico (USD 2.8 billion), and Colombia (USD 0.7 billion).
Florida remained the top choice for foreign buyers for the 16th consecutive year, accounting for 20% of all international purchases. Texas (13%) and California (11%) were next, followed by Arizona (5%), and Georgia, New Jersey, New York, and North Carolina (4% each). Cash transactions were common among international buyers, with 50% of sales being all-cash, compared to 28% for all homebuyers. Non-resident foreign buyers were even more likely to pay in cash (68%), compared to 36% for resident foreign buyers. Canadians (69%) and Chinese (68%) had the highest percentages of all-cash purchases among top foreign buyer groups.
The National Association of Realtors' recent report reveals a significant decline in foreign investment in the U.S. housing market, with total spending dropping to USD 42 billion and the number of properties purchased by international buyers decreasing by 36%. This downturn reflects broader challenges, including a strong U.S. dollar and limited housing inventory. Despite these obstacles, certain markets, particularly Florida, remain popular among foreign buyers, who often opt for cash transactions, underscoring their continued interest in high-value properties.
Advertisement
Facebook
Whatsapp
