The housing market in the United States is becoming more appealing to foreign investors, who view it as a safe investment haven. These buyers are becoming increasingly attracted to the nation’s low prices and vast inventory.
According to a report released by the National Association of REALTORS® (Profile of International Home Buying Activity 2012, Purchases of U.S. Real Estate by International Clients for the Twelve Month Period Ending March 2012), $82.5 Billion in sales can be attributed to global buyers. The survey includes those purchases made during a twelve month span ending March of this year. The numbers reveal an increase by $16.1 Billion when compared to data from the prior year, which indicated $66.4 Billion in purchases by buyers from abroad.
Influx of Buyers from Various Regions
Home buying clients have come from all over the globe to make purchases on U.S. soil. However, there have been concentrations of buyer influx from specific regions. Over half of foreigners making real estate purchases in the United States originate from the countries of China, Britain, Canada, India and Mexico. Purchasers from these five countries are credited with fifty-five percent of all real estate sales in the nation from global clients.
The states of Texas and Arizona are hotspots for foreign buyers. Also, the sunny states of Florida and California are equally appealing. Combined, Texas, Arizona, Florida and California hold fifty-one percent of all housing purchased by foreign real estate clients.
Strategic Geographic Selections by Foreign Real Estate Investors
A closer examination of the data compiled in the National Association of REALTORS®‘ Profile of International Home Buying Activity 2012 report reveals offshore clients are strategically making purchases within specific regions. For example, many have invested in real estate in certain areas because of proximity to their home bases abroad; others favor certain states because of the climate; and, still, many have purchased in specific areas due to location of relatives within the U.S. and the convenience of airport transportation serving their home countries.
A pattern is now visible in foreign investors’ geographic selections. On a broad scale, European buyers tend to favor the East Coast and Florida in particular. The Sunshine State is also appealing to a great number of buyers from Canada and South America. Further, real estate clients from Asia tend to lend toward West Coast areas. (Within each state, it is not uncommon to see clusters of foreign buyers from the same region purchasing within defined cities.)
Impact of Global Buyers on Housing Market in the United States
The influx of foreign buyers has had a positive impact on the U.S. housing market. As the industry nods in the direction of recovery, several states are benefitting from the outpour of real estate investors from abroad.