U.S. Properties Are Luring More Foreign Investors

Residential sales by foreign buyers totaled $82 billion for the year ending March 2011, up from $66 billion a year ago, according to the 2011 Profile of International Home Buying Activity released by the NATIONAL ASSOCIATION OF REALTORS®. The $16 billion increase is one of the largest in recent years.

The average price of a U.S. property purchased by an international buyer was $315,000 compared to the U.S. average of $218,000. But nearly half of international purchases were for properties worth less than $200,000. Nearly two-thirds of international purchases were reported as all-cash transactions.

More than half of all REALTORS® (55 percent) say they worked with at least one international client in the past year, while the bulk of international transactions were handled by a small percentage of REALTORS®.

International buyers represented 70 different countries, up from 53 countries in 2010. For the fourth consecutive year, Canada was the top country of origin with 23 percent of sales, followed by China, Mexico, the United Kingdom and India. Foreign buyers often find U.S. properties to be less expensive than comparable properties in other parts of the world, the report concludes. U.S. properties are also viewed as a secure investment, and they offer rental opportunities and long-term appreciation potential. One new trend the survey finds is the increased number of foreign families who are purchasing U.S. properties in college towns so their child has a place to live while they attend school. Mon, May 23, 2011