Recently I wrote a post about whether cash was still king here in real estate transactions.  It showed that conventional financing, in fact,j0431167 had been the norm recently for buyers of real estate in the U.S.

I’ve written several posts on foreign buyers in the U.S. as well. The future dictates there will be more foreign buyers coming into the U.S. to purchase a piece of the American Dream and that new immigrants will be the majority of our future new home buyers.  However, foreign buyers are still needing cash to purchase any real estate here in the U.S.  according the most recent report by NAR (National Association of Realtors®):

“Pricing

The median price for a home paid by foreign buyers for the year ending in May 2009 was $247,100, higher than the overall national price of $198,100 in 2008. A significant number, 45.8 percent of foreign buyers, paid cash for their property, in part because obtaining a mortgage was more difficult than in prior years. The total dollar volume was $38.7 billion.

Origin of Buyers

U.S. laws do not restrict or scrutinize most property purchases by foreign nationals. There are few barriers to owning property here, unlike transactions in many other countries, although immigration laws prohibit foreigners from remaining in the U.S. continuously for more than six months without a special visa. In addition, international investors are afforded the same property rights as those enjoyed by U.S. citizens.

The top five countries of origin for foreign buyers were: 

  • Canada, 17.6
  • United Kingdom, 10.5 percent
  • Mexico, 9.8 percent
  • India, 8.5 percent
  • China, 5.4 percent

The percentage of buyers from Canada, the U.K., and China declined from the previous study, while purchasers from Mexico and India increased. Although most buyers were from North America, Europe and Asia, buyers from Latin America, Africa, and Oceania also purchased U.S. real estate.

Most Popular States

Foreign buyers were active in every state and the District of Columbia, with the most popular states being Florida, which accounted for 23.0 percent of all foreign purchases; California, 13.0 percent; Texas, 10.7 percent; and Arizona, 7.1 percent. These states are major gateways into the U.S. from other countries and also offer relatively mild climates.

California saw a notable rise in foreign interest as affordability conditions improved markedly in the state last year. Florida was the most popular state for European and Latin American buyers, while Asian buyers are drawn to California.

Property Types

The study shows 69 percent of international purchases were single-family homes, while condos accounted for 18 percent. Townhomes made up 8 percent of transactions, with commercial property at 4 percent. Nearly 46 percent of properties were in suburban areas and 25 percent in urban environments. The rest were evenly split between resorts and small towns or rural areas.”

Source:  NAR® 

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