Annual Foreign Investment in U.S. Existing Homes Sales Decreased 21.2% to $42 Billion
17 Julio 2024 - 8:00AM
Key Highlights
- International buyers
purchased $42 billion worth of U.S. residential properties from
April 2023 to March 2024, down 21.2% from the prior year. The
54,300 existing homes sold – the lowest since NAR began tracking in
2009 – slid 36% from the previous year.
- The average
($780,300) and median ($475,000) purchase prices for foreign buyers
were the highest ever recorded by NAR.
- Canada, China,
Mexico and India were the top countries of origin by number of U.S.
existing homes purchased. The top U.S. destinations for foreign
buyers were Florida (20%), Texas (13%), California (11%), Arizona
(5%), Georgia, New Jersey, New York and North Carolina (4%
each).
Foreign buyers
purchased $42 billion worth of U.S. existing homes from April 2023
through March 2024, retreating 21.2% from the prior 12-month
period, according to a new report from the National Association of
Realtors®. International buyers purchased 54,300 properties, down
36% from the previous year and the fewest number of homes bought
since 2009 when NAR began tracking this data. Overall, U.S.
existing-home sales totaled 4.09 million in 2023, down 18.7% from
2022, and the lowest level since 1995.“The strong U.S. dollar makes
international travel cheaper for Americans but makes U.S. homes
much more expensive for foreigners,” said NAR Chief Economist
Lawrence Yun. “Therefore, it’s not surprising to see a pullback in
U.S. home sales from foreign buyers.”NAR’s 2024 International
Transactions in U.S. Residential Real Estate report surveyed
members about transactions with international clients who purchased
and sold U.S. residential property from April 2023 through March
2024. Foreign buyers who resided in the U.S. as recent immigrants
or who were holding visas that allowed them to live in the U.S.
purchased $22.6 billion worth of U.S. existing homes, a 3.4%
decline from the previous year and representing 54% of the dollar
volume of purchases. Foreign buyers who lived abroad purchased
$19.4 billion worth of existing homes, down 35% from the 12 months
prior and accounting for 46% of the dollar volume. International
buyers accounted for 2% of the $2.1 trillion in total U.S.
existing-home sales during that period.“Historically low housing
inventory and escalating prices remain significant factors in
constraining home sales for American and international buyers
alike,” Yun added.The average ($780,300) and median ($475,000)
existing-home sales prices among international buyers were the
highest ever recorded by NAR – and 21.9% and 19.8% higher,
respectively, than the prior year. The increase in prices for
foreign buyers reflected the overall price increase for all U.S.
existing homes, which climbed to $392,600. At $1.3 million, Chinese
buyers had the highest average purchase price, with 25% purchasing
property in California. In total, 18% of international buyers
purchased properties worth more than $1 million from April 2023 to
March 2024.Canada led all countries of origin in the share of
foreign buyer purchases of U.S. existing homes at 13%, followed by
China and Mexico (11% each), and India (10%). China was first in
U.S. residential sales dollar volume at $7.5 billion, continuing a
trend going back to 2013. Canada ($5.9 billion), India ($4.1
billion), Mexico ($2.8 billion) and Colombia ($0.7 billion) rounded
out the top five.For the 16th consecutive year, Florida remained
the top destination for foreign buyers, accounting for 20% of all
international purchases. Texas (13%) and California (11%) were
second and third, respectively, followed by Arizona (5%), Georgia,
New Jersey, New York and North Carolina (4% each).All-cash sales
accounted for half of international buyer transactions compared to
28% of all existing-home buyers. Non-resident foreign buyers (68%)
were more likely to make an all-cash purchase than resident foreign
buyers (36%). More than two-thirds of Canadian (69%) and Chinese
(68%) buyers made all-cash purchases, the highest shares among the
top foreign buyer nations.“Fostering economic investment in
culturally dynamic communities, businesses, and industries is a top
priority for NAR,” said Alex Escudero, NAR’s director of global
strategy. “Our work provides members and their communities with
tools, resources and data to identify and highlight international
investment opportunities in U.S. real estate. This supports local
communities to drive economic development in markets across the
country. NAR and the Realtor® brand have developed a network of
more than 8,000 international Realtor® members outside of the USA
and expanded our global footprint to more than 100 real estate
organizations across 78 countries, providing growth opportunities
by ensuring ethical and accessible markets that allow our members
to make direct connections with global-minded real estate
professionals and international investors.”NAR will host its
“Unlocking Global Opportunities” webinar on Wednesday, July 31, at
1 p.m. Eastern, where experts will discuss the findings of this
year’s report, and Realtors® will share their personal experiences
with international investment and how it has expanded their
business. The webinar is open to the public and interested parties
can register here.View the full 2024 International Transactions in
U.S. Residential Real Estate report at:
nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate.The
National Association of Realtors® is America’s largest trade
association, representing 1.5 million members involved in all
aspects of the residential and commercial real estate industries.
The term Realtor® is a registered collective membership mark that
identifies a real estate professional who is a member of the
National Association of Realtors® and subscribes to its
strict Code of Ethics.
# # #
Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/newsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
Troy Green
National Association of Realtors®
tgreen@nar.realtor