Wednesday, August 16, 2017 / by Carlos J Higareda
Foreign Buyers Spend 30% More on Homes
Foreign buyers continue to outspend domestic buyers in the U.S.
From April 2016 to March 2017, properties purchased by foreign buyers had a median price of $302,290. That is 30 percent more than the median purchase price of $235,792 for all existing homes sold in the U.S. during that period, according to the National Association of REALTORS®’ 2017 Profile of International Activity in U.S. Residential Real Estate.
In a further examination of averages, the average price among foreign buyers is actually closer to $536,900—or double the average price of domestic buyers at $277,700, according to NAR.
Chinese buyers typically buy the priciest properties. They also tend to gravitate toward central cities and suburban areas that tend to have higher property prices, such as in California, New Jersey, and New York.
Foreign buyers are also more likely to pay in cash than use financing for their home purchase. Foreign buyers from Canada and China are the most likely to make all-cash purchases.
Source: “Foreign Buyers Typically Spent 30 Percent More Than Domestic Buyers,” National Association of REALTORS® Economists’ Outlook blog (Aug. 14, 2017)