Snapshot of data from the international profile report
Yesterday, (June 25), the NAR Research Department released the 2013 Profile of International Home Buying Activity. The report focuses on the purchases of U.S. real estate by international buyers for the twelve month period ending March 2013.
Highlights from the 2013 Profile of International Home Buying Activity include:
- International home sales in the U.S. have reached their second highest level in recent years, making up over six percent of total existing-home sales.
- Total international sales were $68.2 billion for year ending March 2013, down approximately $14 billion from last year.
- The dip is due to economic conditions that are likely to be transitory:
- Rising US home prices, coupled with the strengthening of the dollar against other currencies resulting in higher effective prices for foreign buyers. The Euro and currencies from Brazil, India, and Mexico weakened against the dollar during 2012; only the Canadian dollar strengthened.
- Slower growth in a number of major economies.
- Slow recovery of the U.S. economy.
- Tight credit standards.
- Lower U.S. housing inventories.
- Of the total international transactions, $34.8 billion (51%) is attributed to buyers who reside outside the U.S. and $ 33.4 billion (49%) to recent immigrants or temporary visa holders who are residing in the U.S. for more than six months (students/workers).
- Canadians led the way, buying the most U.S. properties, followed by China, Mexico, the U.K., and India. Other countries in the top rankings included: Germany, Argentina, Israel, Australia & Korea.
- Florida was the biggest beneficiary with 23% of all international purchases. Behind Florida is California with 17%, and Arizona and Texas with 9% each. Other states in the top rankings include: New York, Virginia, Nevada, Hawaii, Illinois & Michigan.
- The median price of homes purchased by international buyers was significantly more than the median price paid by U.S. domestic buyers: Intl. Median Sales Price: $275,862; U.S Existing Home Sales Median Sales Price: $179,867.
View/download the complete report.