Tags: foreign | purchases | US | homes

NAR: Foreign Purchases of US Homes Soared 35 Percent in Latest Year

By    |   Wednesday, 09 July 2014 03:10 PM

While Americans may be struggling to buy new homes amid rising prices, that's apparently not a problem for overseas buyers.

Foreigners bought $92.2 billion worth of U.S. homes in the year through March, a 35 percent increase from $68.2 billion a year earlier, according to the National Association of Realtors (NAR).

Foreign currency strength, affordable home prices and the rising wealth of foreigners led them to snap up U.S. homes, according to the NAR.

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And it wasn't just investors. Approximately 42 percent of the purchases represented primary residences.

China led the way in terms of dollar volume among foreign buyers, acquiring $22 billion of homes in the latest period, up 19 percent from $12.8 billion a year earlier.

The Chinese are attracted partly because their own real estate has grown so expensive, experts say. Chinese buyers "want to diversify because the housing market over there is just way too hot," William Yu, an economist at University of California, Los Angeles, tells The Wall Street Journal.

Chinese buyers also are concerned about political stability in their country, he explains. "There's no trust in the rule of law. If they're making money, smart people are going to try to keep the money here [in the United States]."

Florida, California, Arizona and Texas accounted for 55 percent of overall foreign purchases, with Florida topping the list at 23 percent.

"Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability and an incredible opportunity for investment in their future," NAR President Steve Brown states.

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While Americans may be struggling to buy new homes amid rising prices, that's apparently not a problem for overseas buyers.
foreign, purchases, US, homes
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2014-10-09
Wednesday, 09 July 2014 03:10 PM
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