Chinese Investors Buy $6.1 Billion Worth Of US Homes In Past 12 Months
www.benzinga.com
byDan Budzyn, Benzinga Staff Writer
July 20, 2022 11:03 AM | 2 min read
For the first time in three years, activity from overseas real estate buyers has increased. During a time when the housing market is under incredible scrutiny and seeing astonishing prices, investors from China are gobbling up available homes.
The National Association of Realtors (NAR) reported that international buyers combined to purchase $59 billion worth of U.S. residential properties between April 2021 and March 2022, up 8.5% from the same period one year earlier.
Chinese Investors accounted for $6.1 billion dollars in home purchases, totaling over 10% of the market.
The homes being secured by foreign investors aren’t cheap, with average purchase prices hovering near $600,000 per home and median purchase prices approaching $370,000 — the highest ever recorded by NAR. Chinese investors had the highest average purchase price at just over $1 million per home.
Location tells a story as well. Chinese investors purchased nearly a third (31%) of their homes in California. This is a slight disparity from international buyers as a whole, who found the following states the most attractive (in order): Florida, California, Texas, Arizona, New York and North Carolina.
NAR Chief Economist Lawrence Yun said he doesn’t see things slowing down.
“Due to rising interest rates, overall home sales will decline in the U.S. this year,” Yun said. “Foreign buyers, however, are likely to step up purchases, as those making all-cash offers will be immune from changes in interest rates.
“In addition, international flights have increased in recent months with the lifting of pandemic-related travel restrictions.”
American’s have suffered from work stoppages and alterations since the pandemic started and are in the midst of a recession that Tesla Inc. TSLA CEO Elon Musk has called ”inevitable”. Foreign Investors and even home based companies have made headlines in the past year for purchasing homes at what some would call an alarming rate.
www.benzinga.com
byDan Budzyn, Benzinga Staff Writer
July 20, 2022 11:03 AM | 2 min read
For the first time in three years, activity from overseas real estate buyers has increased. During a time when the housing market is under incredible scrutiny and seeing astonishing prices, investors from China are gobbling up available homes.
The National Association of Realtors (NAR) reported that international buyers combined to purchase $59 billion worth of U.S. residential properties between April 2021 and March 2022, up 8.5% from the same period one year earlier.
Chinese Investors accounted for $6.1 billion dollars in home purchases, totaling over 10% of the market.
The homes being secured by foreign investors aren’t cheap, with average purchase prices hovering near $600,000 per home and median purchase prices approaching $370,000 — the highest ever recorded by NAR. Chinese investors had the highest average purchase price at just over $1 million per home.
Location tells a story as well. Chinese investors purchased nearly a third (31%) of their homes in California. This is a slight disparity from international buyers as a whole, who found the following states the most attractive (in order): Florida, California, Texas, Arizona, New York and North Carolina.
NAR Chief Economist Lawrence Yun said he doesn’t see things slowing down.
“Due to rising interest rates, overall home sales will decline in the U.S. this year,” Yun said. “Foreign buyers, however, are likely to step up purchases, as those making all-cash offers will be immune from changes in interest rates.
“In addition, international flights have increased in recent months with the lifting of pandemic-related travel restrictions.”
American’s have suffered from work stoppages and alterations since the pandemic started and are in the midst of a recession that Tesla Inc. TSLA CEO Elon Musk has called ”inevitable”. Foreign Investors and even home based companies have made headlines in the past year for purchasing homes at what some would call an alarming rate.
