Foreign Buyers Invest $42 Billion in U.S. Real Estate, Marking a 21.2% Decline
WASHINGTON (July 17, 2024) – From April 2023 to March 2024, foreign buyers invested $42 billion in U.S. existing homes, a 21.2% decrease from the previous year, according to the National Association of Realtors® (NAR). International buyers purchased 54,300 properties, the lowest number since 2009 and a 36% drop from the prior year. Overall, U.S. existing-home sales fell to 4.09 million in 2023, an 18.7% decrease from 2022, and the lowest since 1995.
“The strong U.S. dollar makes travel cheaper for Americans but raises home prices for foreigners,” said NAR Chief Economist Lawrence Yun. “This contributes to the decline in foreign home purchases.”
NAR’s 2024 report on International Transactions in U.S. Residential Real Estate surveyed members about transactions with international clients between April 2023 and March 2024. Foreign buyers residing in the U.S., including recent immigrants and visa holders, purchased $22.6 billion worth of homes, down 3.4% from the previous year, representing 54% of the total dollar volume. Foreign buyers living abroad bought $19.4 billion worth of homes, a 35% decline, making up 46% of the dollar volume. International buyers accounted for 2% of the $2.1 trillion total U.S. existing-home sales.
“Low housing inventory and rising prices are significant constraints for both American and international buyers,” Yun added.
The average ($780,300) and median ($475,000) sales prices for international buyers reached record highs, increasing 21.9% and 19.8%, respectively, from the previous year. Overall, U.S. home prices rose to $392,600. Chinese buyers had the highest average purchase price at $1.3 million, with 25% buying in California. Eighteen percent of international buyers purchased properties worth more than $1 million.
Canada led all foreign purchases at 13%, followed by China and Mexico (11% each), and India (10%). China topped the sales dollar volume at $7.5 billion, a trend since 2013. Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion), and Colombia ($0.7 billion) followed.
Florida remained the top destination for foreign buyers for the 16th year, accounting for 20% of international purchases. Texas (13%) and California (11%) were next, followed by Arizona (5%), Georgia, New Jersey, New York, and North Carolina (4% each).
All-cash sales made up half of international transactions, compared to 28% of all existing-home sales. Non-resident foreign buyers (68%) were more likely to pay in cash than resident foreign buyers (36%). Among top foreign buyers, 69% of Canadian and 68% of Chinese buyers made all-cash purchases.
“Supporting economic investment in diverse communities and industries is a priority for NAR,” said Alex Escudero, NAR’s director of global strategy. “Our efforts provide members with resources to identify international investment opportunities, promoting economic development nationwide. NAR has expanded its network to over 8,000 international Realtor® members and more than 100 real estate organizations in 78 countries, fostering growth and ethical markets for global real estate professionals and investors.”
For more information, read the original press release from: https://www.nar.realtor/newsroom/annual-foreign-investment-in-u-s-existing-homes-sales-decreased-21-2-to-42-billion