Investors and landlords wondering about the future value of real estate may find inspiration from new data indicating American property has hit new heights of popularity with foreigners.
Investment by international buyers is up 33.2%, according to the National Association of Realtors.
They spent $56 billion on 78,100 properties between April 2024 and last March. The median purchase price is $494,000, a record high. The average purchase was $717,000.
In its “International Transactions in US Residential Real Estate report”, NAR said the spike followed “several years of pandemic-related disruptions”.
It added: “Due to stubbornly high mortgage rates, a greater share of international homebuyers paid cash – 47% compared to 28% among all buyers – and they were more likely to purchase homes priced in the upper end of the market.
“Foreign buyers are drawn to investing in American real estate, in part, by our country’s strong protection of private property rights.”
Those who resided in the US as recent immigrants or were holding visas that allowed them to live in the US purchased 43,700 homes (56% of all purchases) worth $26.9 billion.
Those who lived abroad purchased 34,400 homes (44% of all purchases) worth $29.1 billion.
Florida’s 15-year record as the top destination remains unchallenged.
Here are the key facts from the report:
$56 billion: Dollar volume, up 33.2% from $42 billion
78,100: Total purchases, up 44% from 54,300
$494,400: Median price, up 4.1% from $475,000
47%: Share who made all-cash purchases
Top 5 destinations:
Florida: 21%
California: 15%
Texas: 10%
New York: 7%
Arizona: 5%
Top five investment sources:
China: 15% share; 11,700 buyers; $13.7 billion in transaction value.
Canada: 14% share; 10,900 buyers; $6.2 billion in transaction value.
Mexico: 8% share ; 6,200 buyers; $4.4 billion in transaction value.
India: 6% share; 4,700 buyers; $2.2 billion in transaction value.
United Kingdom: 4% share; 3,100 buyers; $2 billion in transaction value.