In 2022, Canadian buyers were the largest group of foreign buyers of property in the United States. However, Chinese buyers held the highest value of residential properties with sales totalling $6.1 billion. “Despite the supply shortages and rising mortgage rates that have pushed up home prices, the share of international buyers in the real estate market is expected to continue to increase”, WPBC’s cooperation partner ListGlobally recently published in their annual trend report.
Foreign Buyers in the USA
During the pandemic, foreign buyers receded from the real estate market, leading to increased competition for buyers who were still active in the US market. This decrease was due to travel restrictions and other inconveniences caused by the pandemic, which made it difficult for international buyers, especially those seeking a vacation home, to visit properties in person. However, we saw that foreign real estate investments started to increase again in 2022, ListGlobally further writes.
Domestic US market
According to ListGlobally, the downturn in the housing market in the USA was partly due to the increase of mortgage rates following aggressive increases by the Federal Reserve Bank to curb inflation. Housing supply in the USA is suffering from a shortage and as a result of the pandemic, the high mortgage rates and the high inflation, homeowners stayed put and didn’t move. As a result, home prices on average in the USA in 2022, are nevertheless 6% higher than they were a year earlier.
Foreign buyers are more likely than domestic buyers to pay for homes in cash, with 44% paying all-cash in the past year compared to 24% of all other home buyers in the US. They are also more likely to purchase a property as a second home, with 44% using it as a vacation home, rental, or both, compared to 17% among all existing-home buyers.
ListGlobally surveyed where foreign buyers seach for property. Not really surprisingly, Canadian buyers represented 17%of foreign searches, and Brazilian buyers 3%. The top region where foreign buyers search is Florida, the “Sunshine State”.
As one of the benefits of the membership of the WPBC, members enjoy a price reduction when listing their properties with ListGobally. For more information, send an email to contact@wpbc.club, of send a WhatsApp message to + 33628317171
Click here to read the full report.
Source: Listglobally.
