According to the National Association of Realtors, the international purchases surged $16 billion this year in the US. The United States continue to be attractive for foreign buyers who invest in real estate. The total residential international sales in the US amounted to $82 billion for 2010.
In the previous years, foreign buyers were coming to the US because of lower prices and plentiful inventory. Today, people are investing in the USA for different reasons. First of all, foreign families are purchasing for their kids going to US colleges, then
foreign executives prefer to purchase real estate rather than renting even if their stay is temporary. Finally, purchasing a condo is perceived as an accomplishment for foreigners living here.
Canada, representing 23% of foreign sales, continues to be the first country to purchase in the USA, followed by China. Brazil and Argentina are right behind with 5%, which is up 2% from last year.
The average purchase price of a foreign buyer is $315,000 compared to $218,000 for a national buyer. Furthermore, 62% of foreigners are cash buyers.
Florida remains the state where the majority of international purchasers are with 31% of international transactions. It is followed by California with 12% and Texas (9%). The distance between their home countries, the convenience of air transportation and of course the weather are the 3 major criteria for choosing the state in which they will purchase. That’s why most of Asian purchasers are West coast and Miami real estate attracts South Americans, Europeans and Canadians.
It has been reported that 28% of realtors are working with an international customer.