Whenever national house prices are released in Canada, comparisons are always made to the United States’ rebounding home values. But what if Canadians and other international buyers were boosting the American market?
A new study by National Association of Realtors found that between April 2011 through March 2012, foreign buyers accounted for $82.5 billion, or 8.9 per cent, of the $928 billion spent on residential real estate in the United States.
Impressively, the estimated amount of international sales increased by 24 per cent between 2011 and 2012.
It’s not just Canadians who are snapping up properties south of the border. Five countries dominate the market: buyers from Canada, China (PRC including Hong Kong), Mexico, India, and the United Kingdom made up 55 per cent of transactions tabulated in the study.
Location-wise, the most popular states for out-of-country investors were Arizona, California, Florida, and Texas, which saw 51 per cent of the purchasers. Unsurprisingly, Canadians gravitate towards Florida as do South Americans and Europeans, who also gravitate towards the East Coast. Generally, the West Coast remained an attractive market for Asian purchasers.
Canada and China are the fastest-growing home countries for buyers, but Canucks dominate international transactions, making up 24 per cent of international sales.
See the charts and tables below for more details…