Jinxin Real Estate: Foreign investment in the U.S. real estate market continues to rise

Jinxin Real Estate: Foreign investment in the U.S. real estate market continues to rise According to the National Association of Realtors, 2012 International Real Estate Procurement Activities Briefing Session, as of...

Jinxin Real Estate: Foreign investment in the U.S. real estate market continues to rise According to the National Association of Realtors' 2012 International Real Estate Purchasing Activity Briefing, the total purchases by international real estate buyers in the United States as of March 2012 reached $8.24 billion, a significant increase compared with $6.64 billion in 2011. Total international sales are split equally between nonresident aliens and recent immigrants. International buyers bought homes across the country, but four states accounted for 51% of purchases – Florida, California, Texas and Arizona. Florida has been the fastest growing state with 26% of foreign purchases, followed by California and Texas with 11% and Arizona with 7%. Proximity to home country, ease of air transport, as well as climate and location are important considerations for all potential foreign buyers. ?International buyers come from all over the world, but Canada, China, Hong Kong, Mexico, India, and the United Kingdom account for 55% of all international transactions, according to the survey results. Canada and China are still the fastest growing. China's share increased from 9% in 2011 to 11%, and Canada accounted for 24% of international sales. Forty-five percent of international purchases were less than $250,000. The average price paid by international buyers is $400,000, and the overall U.S. average is $212,000. Several reasons explain why the international average price is higher than the overall average price. International clients are generally wealthier than domestic buyers and are looking for more upscale properties, for example, a larger home suitable for multi-generational living, or a relatively self-contained property in a good neighborhood that stands out. Foreign buyers buy many properties for their own use, as well as for vacation and rental use. 66% of international buyers purchase single-family homes. 62% of international purchases are made with cash, an increase since 2007. Because there is no credit history in the United States, loan financing remains a major issue for international buyers. For more real estate information, please contact Tinna from Goldtrust Realty (480) 287-0180 E-mail: Goldtrustrealty2010@gmail.com