At an average price of $500,000, wealthy foreigners bought a record $104 billion of U. S. residential real estate between April 2014 and March 2015, according to cnbc, accounting for eight percent of existing home sales. The National Association of Realtors (NAR) reports Chinese were the biggest purchasers attributable for $28.6 billion of the total, followed by Canada with $11.2 billion and India with $7.9 billion.
Florida was the favored destination state for overseas real estate buyers as 21 percent of purchasers bought real estate there, followed by California with 16 percent, Texas with eight percent and Arizona with five percent, accounting for half or the overseas buying. Only three percent of the purchases were in New York state, almost all of which were in New York City.
Europeans and Canadians preferred Florida and Arizona, while Asians opted for California and Texas, and Latin Americans favored Florida and Texas, as MHProNews has learned.
Although the number of properties sold to foreign buyers dropped from 232,600 the previous 12 months to 209,000, buyers purchased more expensive properties, which raised the total dollars spent. The mean purchase price was $499,600, 26 percent higher than the previous year, and nearly twice the national mean purchase price of $255,600. Over half the buyers—55 percent—paid cash.
The drop in total number of sales was likely due to the stronger dollar, which makes U. S. real estate more expensive for overseas buyers. However, U. S. property is less expensive than other cities that draw the wealthy: a condo that costs $1.6 million in New York would go for over $4 million in Paris and $2 million in Moscow. ##
(Photo credit: NYTimes/Michael Stravato–480 square foot master bath)
Article submitted by Matthew J. Silver to Daily Business News-MHProNews.