The Real Deal New York

Buyers from Canada, China lead US real estate purchases

New York among top 5 most popular spots for international property searches
July 10, 2014 01:15PM

Deep-pocketed buyers from overseas are no strangers to U.S. real estate. But the international set has been particularly active throughout the country as of late, with foreign purchases leaping 35 percent between April 2013 and March 2014.

Buyers from Canada, China, Mexico, India and the U.K made up the lion’s share of international spenders, accounting for roughly 54 percent of all reported international transactions, according to a report from the National Association of Realtors cited by Forbes. Canadian buyers led the way with the largest share of purchases, which dropped from 23 percent of the total volume in 2013 to 19 percent in 2014, while China had the largest dollar volume, purchasing an estimated $22 billion with an average per-purchase cost of $590,826. China was also the fastest growing source of transactions, making up 16 percent of all purchases — up 4 percent from last year.

Wealthy Chinese buyers are also more inclined to make all-cash purchases, according to Forbes. So far this year, nearly 60 percent of U.S. real estate purchases by international buyers were all cash, as opposed to only one-third of domestic purchases.

Mexico ranked third in U.S. real estate purchases, with 9 percent tot sales, while India and the U.K both accounted for 5 percent.

The top five cities searched online by international buyers in 2014 were Los Angeles, Miami, Las Vegas, Orlando and New York City, according to the report. [Forbes]Julie Strickland