|International buyers face the same challenges as domestic buyers: Transactions were down 9.6% year-to-year, and the number of homes sold (84.6K) declined 14.2%.
WASHINGTON – From April 2022 through March 2023, foreign buyers purchased $53.3 billion worth of U.S. existing homes – 9.6% less than the previous 12-month period, according to the National Association of Realtors® (NAR). They bought 84,600 properties, down 14.2% year-to-year and the fewest number of purchases since 2009, when NAR began tracking international-buyer data.
Still, foreign purchases didn’t fall as much as existing home sales, which were down 17.8% from 2021.
“Sharply lower housing inventory in the U.S. and higher borrowing costs across the world have dented international buyers for two straight years,” says NAR Chief Economist Lawrence Yun. “However, recovering international travel following the end of the pandemic will bring more foreign transactions in coming months and years.”
NAR’s 2023 Profile of International Transactions in U.S. Residential Real Estate surveyed Realtor members about transactions with international clients who purchased and sold U.S. residential property from April 2022 through March 2023:
- Foreign buyers residing in the U.S. as recent immigrants or holding visas that allowed them to live in the U.S. purchased $23.4 billion worth of U.S. existing homes, a 31.4% decrease from the prior year and 44% of the dollar volume of purchases.
- Foreign buyers who lived abroad purchased $29.9 billion worth of existing homes, up 20% from the 12 months prior and accounting for 56% of the dollar volume. International buyers accounted for 2.3% of the $2.3 trillion in existing-home sales during that period.
The average ($639,900) and median ($396,400) existing-home sales prices among international buyers were the highest ever recorded by NAR – and 7% and 8.3% higher, respectively, compared to the previous year. The increase in prices for foreign buyers reflects the increase in U.S. home prices, as the median sales price for all U.S. existing homes was $384,200.
At $1.23 million, Chinese buyers had the highest average purchase price, with a third – 33% – purchasing property in California. In total, 15% of foreign buyers purchased properties worth more than $1 million from April 2022 to March 2023.
China and Canada remained first and second in U.S. residential sales dollar volume at $13.6 billion and $6.6 billion, respectively, continuing a trend going back to 2013. Mexico ($4.2 billion), India ($3.4 billion) and Colombia ($0.9 billion) rounded out the top five.
Top foreign buyers
- China (13% of foreign buyers, $13.6 B)
- Mexico (11% of foreign buyers, $4.2 B)
- Canada (10% of foreign buyers, $6.6 B)
- India (7% of foreign buyers, $3.4 B)
- Colombia (3% of foreign buyers, $0.9 B)
“Home purchases from Chinese buyers increased after China relaxed the world’s strictest pandemic lockdown policy, while buyers from India were helped by the country’s strong GDP growth,” Yun says. “A stronger Mexican peso against the U.S. dollar likely contributed to the rise in sales from Mexican buyers.”
Florida still top state for international transactions
For the 15th consecutive year, Florida remained the top destination for foreign buyers, accounting for 23% of all international purchases.
- Florida (23%)
- California (12%)
- Texas (12%)
- North Carolina (4%)
- Arizona (4%)
“Florida, Texas and Arizona continue to attract foreign buyers despite the hot weather conditions during the summer and the significant spike in home prices that began a few years ago,” Yun says.
Other take-aways from NAR’s report
- All-cash sales accounted for 42% of international buyer transactions compared to 26% of all existing-home buyers.
- Non-resident foreign buyers (52%) were more likely to make an all-cash purchase than resident foreign buyers (32%).
- Two-thirds of Colombian buyers (67%) made all-cash purchases, the highest share among the top five foreign buyer nations. Approximately half of Canadian (51%) and Chinese (47%) buyers made all-cash purchases. Asian Indian buyers were the least likely to pay all cash, at just 15%.
- Half of foreign buyers purchased their property for use as a vacation home, rental property or both – up from 44% the year before.
- Almost three out of five international buyers (59%) purchased detached, single-family homes.
“NAR and the Realtor brand has developed a network of partnerships with over 100 real estate organizations across 77 countries providing growth opportunities by ensuring ethical and accessible markets that allow our members to make direct connections with global real estate professionals and international investors,” says Charlie Dawson, NAR’s vice president of engagement and advocacy outreach.
© 2023 Florida Realtors®
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