Foreigners buying houses in the U.S. are taking a bit of a break, says a new report from the National Association of Realtors (NAR).

From April 2022 to March 2023, foreign buyers spent $53.3 billion on existing U.S. homes. That’s 9.6% less than the year before. They bought 84,600 homes, down by 14.2% from the previous year, which is the lowest since 2009 when they started keeping track.

Just like local buyers, the high prices and higher mortgage rates are giving them pause.

Although these buyers are spending more on homes, their reasons are changing. They’re not just looking for investment; they want to become American residents and citizens.

In the mid-2010s, many wealthy Chinese buyers were investing in properties abroad to diversify their wealth. However, things have changed, and now, only about one in every 10 Chinese buyers is buying property solely for investment purposes, according to Kashif Ansari, the co-founder and CEO of Juwai IQI. 

In 2023, most Chinese buyers are not just looking to invest offshore; instead, they are heading toward becoming American residents and citizens. Chinese buyers spent the most, with an average of $1.23 million per home. They used to buy for investment, but now they’re thinking about living in the U.S.

After China, the following countries had the most buyers Mexico, Canada, India, and Colombia. And they liked places like Florida, California, Texas, North Carolina, Arizona, and Illinois.

These foreign buyers are only a tiny part of the market (about 2%). So, even though they’re buying less, it might not change the whole market a lot.

 

Read More: Yahoo.com

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