Who is currently assisting in the recovery of the US for-sale housing market? Of course, a large number of Americans. However, looking outside of the United States would provide a more balanced view. apartment for sale
According to a June survey by the National Association of Realtors, foreign nationals spent $82.5 billion, or 8.9%, of the $928 billion spent on residential real estate in the United States from April 2011 to March 2012.
This was up from $66.4 billion the previous year by 24%. Just five states accounted for more than half of all revenue last year:
Florida, California, Texas, Arizona, and New York. Canadians are also buying in the Midwest, especially in Chicago.
International investors have saturated the American market since the 2008 housing crisis, taking advantage of favorable exchange rates, lower costs, and, in some cases, record-low mortgage rates.
Canadians are mostly purchasing in the United States to invest in the short term and retire later.
According to NAR results, Canadians accounted for 24% of sales to foreigners in the year to March.
After Canadians, the Chinese are the second-largest international home buyers. In the year to March, buyers from mainland China and Hong Kong accounted for over $7 billion in revenue, or 11% of all foreign sales. From California to New York, Chinese buyers are paying cash for high-end, multimillion-dollar properties. The majority of the sales are for second homes or as long-term investments.
The Chinese prefer the United States because their money goes further there. $2 million in Shanghai could only get you a two-bedroom apartment.
Although some Chinese buyers reside in the United States full or part-time, realtors estimate that about 40% of the homes are purchased for investment purposes. They're buying homes in states where foreclosures are rampant, such as Nevada and Florida. Some people are purchasing two or three homes at once.
There's one more factor to consider: status. In today's China, owning a foreign home is a status symbol.
According to online reports from national brokerage houses like Coldwell Banker, Jones Lang LaSalle, Prudential Douglas Elliman Real Estate, and the Shanghai magazine Hurun Article, Russian billionaires have also been making headlines for buying some of the most opulent homes in the United States.
According to Forbes, in 2011, Yuri Milner 'overpaid' by 100% on a $100 million Silicon Valley home. After investing $100 million on Donald Trump's Palm Beach palace in 2008, Dmitry Rybolovlev's daughter purchased a $88 million penthouse in New York City. In Miami's most expensive sale ever, an anonymous Russian buyer paid $47 million.
Russian buyers attract a lot of media attention because they prefer to purchase the most expensive trophy properties. Other major spenders from South America, such as Argentina, Brazil, Colombia, and Venezuela, also flock to the United States.
Brazilians have gotten a lot of press for their shopping sprees in Miami and, increasingly, New York City, but Argentines have been just as involved.
According to Prudential Douglas Elliman Real Estate, an increasing number of Venezuelans are investing in American real estate as a safe haven for their capital as their country faces political and financial instability. Rental properties account for a large portion of the purchases.
French buyers are also interested in the South Florida real estate market.