Home News Chinese buyers spent record $6.1B on US real estate in 2021

Chinese buyers spent record $6.1B on US real estate in 2021

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Chinese investors were the most active buyers U.S. real estate Last year, foreigners spent a record $ 6.1 billion on housing, primarily in Florida and California, according to the National Association of Real Estate Agents.

According to NAR, buyers in mainland China, Taiwan and Hong Kong spend an average of just over $ 1 million on a single transaction to buy an existing home, nearly one-third (31%) of California real estate. It was related to the acquisition.

Canada came in second. Investors based north of the border spent $ 5.5 billion on US residential real estate between April last year and March this year.

Buyers from India ($ 3.6 billion), Mexico ($ 2.9 billion) and Brazil ($ 1.6 billion) finish the top five.

Florida was the state with the highest volume of real estate purchases, according to figures provided by the NAR. It was the 14th consecutive year that foreign investors were most interested in sunshine real estate.

Florida accounted for 24% of all international real estate purchases in the United States, and California ranked second (11%).

Investors from mainland China, Taiwan and Hong Kong have acquired real estate in states such as Florida and California.
Bloomberg via Getty Images

Texas attracted 8% of all foreign-based real estate transactions, while Arizona accounted for 7%. New York and North Carolina It was tied at 4%.

In total, foreign buyers have spent $ 59 billion to buy 98,600 existing homes in the United States. This is an 8.5% increase over the previous 12 month period.

Of these purchases, 44% were sold in full cash. That’s almost twice as much as all existing homebuyers.

Foreign-based investors were twice as likely to buy in full cash as compared to resident foreign buyers.

Nearly six out of ten Chinese buyers, 69% of Canadian investors bought in full cash, and just over a quarter of Mexican and Brazilian buyers did the same, according to NAR.

A sign is posted in front of a house for sale in San Francisco on July 14, 2022
China and Canada were the countries where investors spent the most on US real estate last year.
Getty Images

Almost half (44%) of foreign buyers bought a property for use as a villa, rental property, or both.

“Rising interest rates will reduce overall US home sales this year,” said Lawrence Yun, chief economist at NAR.

“But foreign buyers may increase their purchases because those who make full cash offers are not affected by changes in interest rates.”

“In addition, the removal of pandemic-related travel restrictions has increased international flights in recent months,” he added.

Earlier this week Senior economists say the US housing market Following the release of data showing the collapse of homebuilder confidence this July, it may be on the verge of a “meltdown.”

Confidence in US homebuilders plummeted 12 points to 55 in July. According to the latest data From the National Association of Home Builders / Wells Fargo Housing Market Index released on Monday.

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