Foreign Real Estate Buyers in Califronia

I have heard widely varying reports on the amount of foreign buyers snatching up real estate in America.  The National Association of Realtors (NAR) recently released a report based on the 12 months ending March 2011.  8% of all sales where from international buyers.

Foreign Buyers definitely have their favorite states.

32% of them bought property in Florida

12% in California

9% in Texas

6% in Arizona

These numbers don’t really surprise me.  I thought Arizona might have been higher…

62% of these purchases were all cash sales. That sure brings some foreign money into our economy.

NAR also asked what they intended to do with the properties:

37% for primary residence

28% vacation house for personal / family / friends use

16% residental rental

13% vacation home and rental property

I would have guessed a lot more of the purchases were for investments.  65% are for completely personal usage and 13% are for vacation houses (personal and to rent).

What countries these investors come from…

31% North America

26% Asia

11% South America

3% Middle East

3% Africa

2% Central America

Nothing shocking here, I would have guessed the Middle East was higher, but maybe the political climate hampers that.

 

 

 

 

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4 Responses to “ Foreign Real Estate Buyers in Califronia ”

  1. We are seeing a lot of this in San Antonio. My guess is that there are a lot of people from Mexico wanting to escape the dangerous situation there. There are a lot of affluent people from Mexico buying houses here.

  2. Luis says:

    I really would take those numbers about what the home is for with a grain of salt. Here in Atlanta they are selling homes to foreign investors by the dozens but if you saw the areas that these homes are in and what they look like you would very quickly see that no one will be making those their primary residence ! These are rentals, period.

  3. Maxhine Yap says:

    The statistic really show a number of foreign buyer and most of them buy it for personal usage. Real estate is a good investment. If ever I got the chance, I might as well venture into these.

  4. allexaU says:

    I agree with maxhine most of the buyer are foreigners and its for their personal usage.

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