"In this country we have always known that housing is a good long-term investment, and many foreign buyers seem to share this view," said NAR President Pat V. Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. "This latest study shows that more and more consumers from around the world are interested in purchasing a home in the United States for themselves, as an investment, or simply to enjoy a piece of the American dream."
In 2006, most international home buyers purchased single-family homes or townhomes, and like most domestic home buyers, they financed their purchase. However, they showed stronger preferences for condos/apartments when compared to U.S. home buyers; 22 percent of international buyers purchased condos/apartments, versus 12 percent of U.S. buyers. Twenty-eight percent of foreign buyers bought their houses with cash, compared to 8 percent of U.S. buyers. The median sales price of homes purchased by international buyers was $299,500, which is significantly higher than the U.S. median of $221,900 during the same period.
Forty-seven percent of all international buyers purchased homes exclusively for vacation, while 22 percent were motivated primarily by investment. Nearly a third of foreign buyers cited both vacation and investment as reasons for their purchase. International homeowners spent an average of 4.2 months of the year in their U.S. property in 2006. A third of all international buyers are from Europe, but buyers from Asia and North America (outside the United States) each represent about one-fourth of the total market. Sixteen percent of all international buyers are from Latin America. By individual country, most buyers come from Mexico (13 percent), the United Kingdom (12 percent) and Canada (11 percent).
Foreign buyers purchase homes across the United States, but 52 percent of sales in 2006 were concentrated in three states - Florida (26 percent), California (16 percent) and Texas (10 percent). The South attracted nearly half - 49 percent - of international buyers last year, while 31 percent purchased homes in the West. Nearly a third of the Realtors(R) surveyed worked with international clients or prospects during the previous year. Realtors(R) who actually closed sales of homes to international clients reported an average of 1.9 clients, representing 15 percent of their annual business. Most Realtors(R) reported a rise in sales to international buyers - 25 percent of Realtors(R) had increasing business compared to five years ago, with another 67 percent reporting about the same level of international business; only 8 percent noted a decrease. A third of Realtors(R) surveyed believe that foreign retirees will represent an increasingly important market for Realtors(R) based in the United States.
