Monday Market Update: International Transactions – Top 5 States
International real estate trends are changing - but are especially important to follow in the 5 states below!
Global property trends and international real estate data have long been a source of our interest and expertise, particularly with the strength of the market here in Silicon Valley. This week, we are pleased to present the latest data courtesy of the National Association of Realtors (NAR)® recent news release (published today!).
THE STATS
Foreign buyers purchased $54.4 billion worth of U.S. existing homes from April 2020 through March 2021. The top 5 destinations attracting foreign buyers are:
Florida, California, Texas, Arizona, New Jersey and
New York. The top 5 countries of origin by US residential sales volume are
China, Canada, India, Mexico and the
United Kingdom. All-cash sales represented 39% of international buyer transactions – with 82% of UK buyers paying all cash; Asian Indian buyers were the least likely to pay all-cash at just 8%.
THE NOT-SO-SURPRISING
Global real estate transactions decreased 27% year-over-year in the 12-month time frame ending in March 2021. Not surprisingly, this drop was largely driven by the pandemic (on account of worldwide economic contraction, lack of tourism & drastically reduced business arrivals).
THE FUTURE
"As travel restrictions loosen and foreign students return to U.S. colleges in the upcoming year, there is likely to be some growth in foreign buying of U.S. real estate," Yun added. "High home prices and the ongoing lack of inventory could, however, pose a challenge for buyers."
While the ebb & flow of global real estate has created some high highs and low lows, this is no doubt a critical topic to follow. In the weeks to come, we will no doubt explore the other side of the coin as we track the purchases of offshore property by US buyers.
Read In Full: Annual Foreign Investment in U.S. Existing-Home Sales Falls 27% to $54.4 Billion, Lowest Level in a Decade
All my best,
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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