Foreign Buyers Purchasing Fewer (But More Expensive) US Existing Homes

WRE News July 21, 2024

Buyer

Foreign buyers purchased $42 billion worth of US existing homes between April 2023 and March 2024, according to new data from the National Association of Realtors (NAR). This represented a 21.2% from the prior 12-month period.

Foreign buyers purchased 54,300 properties during this period, down 36% from the previous year and the fewest number of homes bought since NAR began tracking this data in 2009. This decline came along with the downturn in U.S. existing home sales – 4.09 million in 2023, down 18.7% from 2022 and the lowest level since 1995.

While sales volume was down, sales prices were up. 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. All-cash sales accounted for half of international buyer transactions compared to 28% of all existing home buyers.

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 was the leading country 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 ($700 million) 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).

“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 US real estate.”