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Foreign investment in U.S. existing homes sales decreases
NAR

Recently released figures show that foreign buyers purchased $42 billion worth of U.S. existing homes from April 2023 through March 2024, retreating 21.2 percent from the prior 12-month period. The information is included in a new report from the National Association of Realtors, NAR. International buyers purchased 54,300 properties, down 36 percent 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 percent 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 percent decline from the previous year and representing 54 percent of the dollar volume of purchases. Foreign buyers who lived abroad purchased $19.4 billion worth of existing homes, down 35 percent from the 12 months prior and accounting for 46 percent of the dollar volume. International buyers accounted for 2 percent 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 percent and 19.8 percent 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 percent purchasing property in California. In total, 18 percent 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 percent, followed by China and Mexico (11 percent each), and India (10 percent). 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 percent of all international purchases. Texas (13 percent) and California (11 percent) were second and third, respectively, followed by Arizona (5 percent), Georgia, New Jersey, New York and North Carolina (4 percent each).

All-cash sales accounted for half of international buyer transactions compared to 28 percent of all existing-home buyers. Non-resident foreign buyers (68 percent) were more likely to make an all-cash purchase than resident foreign buyers (36 percent). More than two-thirds of Canadian (69 percent) and Chinese (68 percent) 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.”

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.