International buyers are very interested in American luxury real estate. In fact, the United States has been named the hottest real estate market for international buyers.
So where are these home buyers coming from?
According to the National Association of Realtors, a little over half of foreign buyers are coming from the United Kingdom, India, Mexico, Canada and China.
5. The United Kingdom
Buyers from the UK make up 4 percent of the international buying market. The country spent $3.8 billion in total on American homes.
Mexico is next with $4.9 billion in American real estate purchases.
Mexico is followed by India with $7.9 billion in purchases. The study found that Indian buyers were the most likely to purchase a primary residence out of these top five.
Our neighbors to the north have bought $11.2 billion worth of homes. Canadians are most likely to purchase vacation homes in the Southwest and Florida to escape their snowy winters.
China’s strong economy shows in these statistics. For the first time, China bought more real estate than other countries–around $28.6 billion worth of American property. In addition they tend to buy the most expensive homes at an average of $831,000. Chinese buyers look for homes on the West Coast for the ample education, business and trade opportunities.
The study also names California, Arizona, Texas, New Jersey as top destinations for buyers. Florida has been the most desirable state this year.
Most international buyers pay with cash. However, 44 percent are mortgage buyers. There’s a myth out there that most international buyers will pay all cash and pay more than a property is worth. Not true! Many foreign buyers want bargains and desirable properties.
Do you have any experience with international buyers?