Here’s one factor finally working in favor of U.S. homebuyers: You’re no longer competing with foreign buyers. Activity from international buyers has plunged, the National Association of REALTORS® reports. NAR’s new International Profile of International Transactions in Residential Real Estate shows just 54,300 purchases of existing homes by foreign nationals during the April 2023–March 2024 period. That was off from 84,600 the previous year and way below the pre-pandemic peak of 284,500 sales in the year ending March 2017. In terms of dollar volume, foreigners spent $42 billion in the latest year, off from $53 billion the previous year and the 2017 peak of $153 billion. “The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners,” NAR Chief Economist Lawrence Yun said in a statement. “Therefore, it’s not surprising to see a pullback in U.S. home sales from foreign buyers.” The typical foreign buyer paid $475,000. International buyers focus on a handful of states – Florida accounted for 20% of all international transactions, followed by Texas (13%), California (11%), Arizona (5%) and Georgia (4%). In other words, more than half of international buyers landed in just five states. New York, New Jersey, North Carolina and Illinois also are common destinations for foreign buyers. International buyers are a factor in only a handful of Sun Belt and coastal markets. If you’re shopping for a home in Indiana or Iowa or Kansas, the decline in foreign transactions won’t help you much. But if you’re looking in Florida or California, it’s small respite. While the fading of foreign buyers is not a great trend for condo developers in Miami, the shift could help U.S. buyers. They’ve already been buffeted by a lack of supply, and by competition from investors snapping up both existing homes and new homes. There’s some evidence foreign buyers are being priced out: The average price ($780,300) and median price ($475,000) paid by international buyers were the highest ever recorded by NAR – up 21.9% and 19.8%, respectively, from last year. At $1.3 million, Chinese buyers had the highest average purchase price, with 25% buying in California. In total, 18% of international buyers purchased properties worth more than $1 million from April 2023 to March 2024, NAR said. Canada led all countries of origin in the share of foreign buyer purchases of U.S. existing homes at 13%, followed by China and Mexico (11% each), and India (10%). China was first in U.S. residential sales dollar volume at $7.5 billion, continuing a trend going back to 2013. Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion) and Colombia ($0.7 billion) rounded out the top five.
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International buyers purchase fewest existing homes on record: NAR https://ift.tt/D2J6wra International homebuyers purchased the fewest number of existing homes for any year since the National Association of Realtors (NAR) began tracking the data in 2009. On Wednesday, the trade group reported in its 2024 International Transaction in U.S. Residential Real Estate Report that the number of existing homes purchased by international buyers had fallen 36% year over year to 54,300 homes during the year ending in March 2024. These home purchases represented $42 billion in sales volume, which also fell year over year by 21.2%. This decrease came even as the average ($780,300) and median ($475,000) purchase prices for foreign buyers were the highest ever recorded by NAR, up 21.9% and 19.8%, respectively, from a year ago. “The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners,” NAR chief economist Lawrence Yun said in a statement. “Therefore, it’s not surprising to see a pullback in U.S. home sales from foreign buyers. Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike.” Resident foreign buyers, who live in the U.S. as recent immigrants or hold visas that allow them to live in the U.S., purchased $22.6 billion worth of U.S. existing homes. That was a 3.4% decline from the previous year and represented 54% of the sales volume of homes purchased by international buyers. Nonresident foreign buyers living abroad, on the other hand, made up 46% of the total sales volume, purchasing $19.4 billion of existing home inventory, down 35% annually. In total, foreign buyers accounted for 2% of the $2.1 trillion in existing U.S. home sales during the 12-month period ending in March. Compared to domestic buyers (28%), international buyers (50%) were more likely to purchase homes with cash. Nonresident foreign buyers (68%) were more likely to make an all-cash purchase than a resident foreign buyer (36%). And the international buyers who had the highest share of all-cash purchases were those from Canada (69%) and China (68%). Nearly half of all international buyers came from Canada (13%), China (11%), Mexico (11%) and India (10%). The top destinations for foreign buyers were Florida (20%), Texas (13%), California (11%) and Arizona (5%). Georgia, New Jersey, New York and North Carolina each had shares of 4%. Chinese buyers had the highest average purchase price at $1.3 million and they purchased a total of $7.5 billion in sales volume, the most of all international buyers, a trend that dates back to 2013. Buyers from Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion) and Colombia ($0.7 billion) rounded out the top-five countries of origin for sales volume. via HousingWire https://ift.tt/yPmoAc3 July 17, 2024 at 09:35AM
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Foreign Buyers Purchase $42 Billion of U.S. Homes in 2024, a 21 Percent Annual Decline According to a recent report from the National Association of Realtors (NAR), foreign buyers spent $42 billion on U.S. existing homes between April 2023 and March 2024, a 21.2% decrease from the previous 12 months. NAR Chief Economist Lawrence Yun attributed the decline to the strong U.S. dollar, which makes international travel cheaper for Americans but significantly increases the cost of U.S. homes for foreign buyers. "It's no surprise to see foreign buyers pulling back from U.S. home sales," Yun said. #realestate #property #investors #investments #therealtynews #data #report #housing #hnwis #residential #demand #growth #inventory #sales #newlaunches #projects National Association of REALTORS® https://lnkd.in/gbrgiNYn
Foreign Buyers Purchase $42 Billion of U.S. Homes in 2024, a 21 Percent Annual Decline
worldpropertyjournal.com
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Foreign Buyers Fleeing U.S. Housing Market with Sales at a Record Low The number of existing homes purchased by foreign buyers in the U.S. was down 36% from the year-earlier period, the report found. Sales of homes to international buyers fell for the seventh year in a row in March, and to an all-time low since the NAR began tracking the data in 2009. https://lnkd.in/gbwh422e
Foreign buyers are fleeing the U.S. housing market, with sales at a record low
marketwatch.com
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Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
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Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
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Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
-
Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
-
Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
-
Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
-
Did you know that Canada was the leading international buyer of U.S. real estate last year? The National Association of Realtors®️ recently published its annual report, revealing that last year was the slowest for international purchases in 15+ years. Check out our full summary here ⬇️
Canada Leads International Buyers of U.S. Real Estate in Slowest Period in 15+ Years
https://www.rbcroyalbank.com/en-ca
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