According to the National Association of Realtors, the Chinese are the most active buyers of US real estate with investors from Hong Kong, Taiwan, and mainland China mostly purchasing existing properties. A third of those deals involved the acquisition of properties in California.
Chinese buyers spent record $6.1 billion with an average of $1 million per deal with mainland China, Taiwan, and Hong Kong foreign buyers being the most active in the market.
Canadians were the second most active buyers in the US real estate market, spending a total of $5.5 billion on international real estate purchases from April 2021 to March 2022. Indian, Mexican, and Brazilian buyers come in at third, fourth, and fifth place respectively.
The US real estate market is becoming increasingly popular with foreign investors with a total of $59 billion which is an 8.5% increase from the previous year.
According to the National Association of Realtors, foreign-based investors are more likely to pay in cash compared to resident foreign buyers. Six out of ten Chinese buyers made all-cash purchases while 69% of Canadian investors paid in cash.
Florida is the top choice for foreign buyers followed by California, Texas, Arizona, and New York. 2021 is the 14th consecutive year that Florida has been the number one choice for foreign buyers.
Foreign investors expressed interest in the state of Florida for several years now with its stable economy, attractive tax structure, and tropical weather. However, the rising interest rates in the US will most likely lead to a decline in purchases.
But foreign buyers are immune to higher mortgage rates in the US since most of these foreign investors make all-cash purchases according to Chief Economist Lawrence Yun. And with pandemic-related travel restrictions lifting, international flights resuming, and vaccine passports becoming more common, it is likely that the number of foreign buyers will continue to rise in the coming months.
44% of real estate purchases from foreign buyers will be used as a rental property, vacation home, or both.
As the US continues to be a safe haven for foreign investors, the real estate market is expected to heat up even more. So, if you’re thinking of selling your property, now would be a good time to do so.
Josh Stein Realtor is your best bet when it comes to real estate transactions in Florida. With years of experience and intimate knowledge of the market, Josh Stein will help you get the best prices of luxury real estate in Florida – from condos to penthouses and more. Contact Josh today to get started.