Number of international home buys in U.S. soars to $82.5 billion as Europe sinks

TRD New York /
Jun.June 11, 2012 02:30 PM

International investors encouraged by record affordability and fear of a European collapse purchased $82.5 billion of residential real estate in the U.S. from March 2011 to March 2012, according to a National Association of Realtors survey cited by the Wall Street Journal. This comes as a 24 percent or $18.5 billion increase from the year period ending in March 2011. Approximately 55 percent of the foreign investment came from just five countries: Canada, China, Mexico, India and the United Kingdom, with Canadians representing the largest share of U.S. investment, nearly 25 percent. Similarly, five states accounted for 55 percent of the international sales: Florida, California, Texas, Arizona and New York.

Almost half of these investors identify themselves as temporary visa holders or recent immigrants to the U.S., although the other half say that they are permanent residents of foreign nations that spend less than six months each year in America.

As with the huge demand for luxury properties in the country, and especially in New York, the stable perception U.S. real estate holds among foreign buyers appears to be behind the surge. Some 50 percent of those surveyed said that they viewed U.S. real estate as secure and profitable, while around 40 percent claimed that the desirability of location was the most important factor when they buy. International investors “are either looking for safe havens or bargains, so we’re seeing it at both ends of the spectrum,” said Kenneth Rosen, University of California, Berkeley’s Fisher Center for Real Estate Research chairman. [WSJ]


Related Articles

arrow_forward_ios
(iStock)

Pandemic slammed brakes on nearly half of would-be homebuyers: Survey

Pandemic slammed brakes on nearly half of would-be homebuyers: Survey
The final week of June saw the average loan size hit $360,300, a record high in the history of MBA’s purchase index (iStock)

Size of home purchase loans hits record high

Size of home purchase loans hits record high
(iStock)

Home loans are getting bigger, even as application volume drops

Home loans are getting bigger, even as application volume drops
(iStock)

Party’s over? Applications for homes loans fall

Party’s over? Applications for homes loans fall
Housing construction hasn’t recovered to pre-pandemic levels yet, but more permits were issued last month than expected. (Credit: iStock)

Housing starts are still low, but jump in permits suggest builders are planning

Housing starts are still low, but jump in permits suggest builders are planning
Mortgage Banker Association’s weekly index shows another increase in purchase applications for home loans during the second week of June 2020 (iStock)

Mortgage applications to buy homes hit 11-year high

Mortgage applications to buy homes hit 11-year high
The pandemic has brought a silver lining for Lennar

The pandemic has brought a silver lining for Lennar

The pandemic has brought a silver lining for Lennar
Federal Reserve Chairman Jerome Powell (Getty, iStock)

Real estate stocks outperform broader market but still sink

Real estate stocks outperform broader market but still sink
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...