NAR reported an 8.5% increase, stopping a three-year skid.
By Paul Bergeron | July 19, 2022 at 05:41 PM
International investors have returned to the US existing home sales market.
Foreign parties purchased $59 billion worth from April 2021–March 2022, up 8.5% from the previous year and breaking a three-year streak of declines.
China, Canada, India, Mexico and Brazil were the top five countries of origin by U.S. residential sales dollar volume. The top U.S. destinations for foreign buyers were Florida, California, Texas, Arizona, New York and North Carolina.
“For the second year in a row, restrictions and general caution tied to international travel during the pandemic slowed home buying by wealthier foreign buyers,” NAR Chief Economist Lawrence Yun said in prepared remarks. “Even so, domestic home buying demand was exceptional and, therefore, boosted home sales nationally.”
Parents Look to Provide Students with High-Quality Housing
Emily Zhu, head of marketing strategy at New Empire Corp., tells GlobeSt.com that her firm expects that the US will see an influx of capital from foreign investors in both existing homes and new developments.
“Notably, as international students return to in-person learning, parents will look to provide their children with quality housing in optimally located areas,” Zhu said. “However, the rise of inflation will make home buying more expensive for international buyers due to the foreign exchange rates. If these costs continue to rise at the current rate, the US investment demand may dip.”
Spike in Vacation Homes
NAR reported that 44% of foreign buyers purchased their property for use as a vacation home, rental property or both.
“Approximately two-thirds of international buyers (64%) purchased detached single-family homes and townhouses,” according to the report.
“Nearly half of international buyers (46%) purchased a home in the suburbs while 29% bought a home in an urban area – both figures have held steady over the last five years. Five percent of foreign buyers bought property in a resort area, down from 17% in 2012.”