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Foreign home purchases decline sharply in the U.S.

Date:2018-07-30  Hits:46

 A latest survey has found that foreign home purchases in the United States are declining sharply due to rising property prices and a low inventory.

An annual survey released Thursday by the National Association of Realtors (NAR) showed that international sales between April 2017 and March 2018 totaled 121 billion U.S. dollars, down 21 percent from the previous 12-month period.

Foreign buyers and recent immigrants accounted for 8 percent of the total existing home sales, a decrease from 10 percent during the 12-month period that ended March 2017, according to the NAR'S 2018 Profile of International Transactions in U.S. Residential Real Estate.

"After a surge in 2017, we saw a decrease in foreign activity in the housing market in the latest year, bringing us closer to the levels seen in 2016," said Lawrence Yun, NAR's chief economist.

"Inventory shortages continue to drive up prices and sustained job creation and low interest rates mean that foreign buyers are now competing with domestic residents for the same, limited supply of homes," he said.

The survey showed that China, Canada, Britain, India and Mexico were the leading five countries which accounted for 49 percent of the dollar volume of purchases by foreign buyers.

Foreign buying activity in the country has been mostly limited to three U.S. states, namely, Florida (19 percent), California (14 percent) and Texas (9 percent).

International buyers usually buy more expensive properties than the average existing home, with a median price for a foreign buyer standing at 292,400 dollars, 17 percent higher than the medium price for all existing homes, the survey said. 

 
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