Lots of buyers have been purchasing real estate in the US lately. The big news here according to CNBC is that a lot of them are foreign, a great many of those are from China, and that has been the way things are for four years running now. Oh, and they’re more interested in cheaper properties than before. Furthermore, fewer of these investors are planning to actually reside in America.
The National Association of Realtors (NAR) stated in their annual report that between April 2015 and March 2016, buyers from outside the country have bought up a total of $102.6 billion worth of US residential properties, with a decline in dollar volume from the last survey by about 1.3 percent. But that doesn’t change the fact that the quantity of properties bought is 214,885 in all, a 2.8 percent increase. Rick Sharga, executive vice president at online real estate marketplace Ten-X, believes that, "The slight drop in dollar volume can probably be accounted for based on the types of properties purchased, and the locations of many of those properties. We've seen at least some evidence that foreign buyers…have begun looking beyond expensive markets like San Francisco, New York City and Washington D.C., and buying properties in smaller, less-expensive cities in the Southeast and Midwest."
As stated earlier, the lion’s share of foreign purchase of US properties goes to the Chinese, to a degree that their dollar volume alone is greater than those of the next four largest buyers by country, put together. Compared to the second largest buyer Canada, China’s dollar volume of sales at $27.3 billion is easily three times larger. They have also bought up the priciest homes on record, at $ 542,084 in terms of median price.
NAR chief economist Lawrence Yun noted of these current trends, "Although China's currency modestly weakened versus the U.S. dollar in the past year, it's much stronger than it was five to 10 years ago, thereby making U.S. properties still appear reasonably affordable over a longer time span."
With the global financial market in a current state of unpredictable flux, it’s understandable that Asians investing in real estate is seen as a smart and safe option. The fact that real estate in the US is a far sight less expensive than in Asia makes for a no-brainer in choices. This has become more prominent ever since the Brexit vote utterly demolished London and the UK’s image for foreign investment. And they had been the fourth largest foreign buyers of US real estate before the chaos.
Foreign buyers have concentrated their property investments to five states: Florida, California, Texas, New York and Arizona. Asian purchasers favored their buys in California and New York, and parts of Texas as well.
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