Report: Considered financially unaffordable in most US counties.
At the same time, the amount of money foreign buyers invested in existing U.S. homes rose 8.5 percent between April 2021 and March 2022 to $59 billion compared to the same period last year. That increase halted a three-year decline in U.S. foreign investment.
The gap between sales figures and financial investment can be explained this way: Both the median ($598,200) and median ($366,100) purchase prices for international buyers are the highest recorded by NAR. The average sales price was 17.7 percent higher than last year, and the average sales price was 4.1 percent higher.
International buyers include foreign buyers living in the US, such as recent immigrants or foreign buyers who have visas that allow them to live in the US. Foreign buyers living in the U.S. account for 58 percent ($34.1 billion) of dollar purchases, while those living overseas account for 42 percent ($24.9 billion).
In dollar terms, the top five countries for international purchases in the US are China, Canada, India, Mexico and Brazil. Chinese buyers had the highest average purchase price of over $1 million.
China and Canada are the top countries with the most buyers in the US since 2013.
The top states for international buyer purchases were Florida, California, Texas, Arizona, New York and North Carolina. Florida accounts for nearly a quarter (24 percent) of international purchases in the U.S., followed by California (11 percent), Texas (8 percent) and Arizona (7 percent). New York and North Carolina are tied at four percent. Florida has topped the list of international buyers for 14 consecutive years. Nearly one-third of Chinese buyers bought homes in California.
While home sales are expected to slow this year due to higher mortgage rates, purchases by foreign buyers are expected to increase. More foreign buyers (44 percent) paid cash for their home, compared to 24 percent of existing home buyers. International buyers living abroad are more likely to buy with cash (60 percent), compared to 30 percent of foreign buyers living in the U.S.
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