Rising home prices and sluggish economies overseas have combined to keep many foreign homebuyers out of the U.S. market in the past year, but buyers from China flush with cash proved to be big spenders, according to the National Association of Realtors (NAR).
Economic conditions did not deter Chinese buyers, who accounted for 12 percent of the sales to foreign clients. Sixty-nine percent of Chinese buyers paid cash and bought pricier homes, paying a median price of $425,000 in the past year compared to $276,000 for all foreign buyers and $180,000 for U.S. buyers.
Overall foreign buyers spent $68.2 billion on U.S. home purchases in the 12-month period ending March 31 of this year, according to the NAR’s 2013 Profile of International Home Buying Activity. That’s down from $82.5 billion in the previous 12-month period.
The top five countries for foreign buyers were:
- Canada (23 percent)
- China (12 percent)
- Mexico (8 percent)
- India (5 percent)
- United Kingdom (5 percent)
Michael Lewis is Managing Editor at the National Notary Association.