Wealthy Chinese nationals are leading the rise in international sales of U.S. real estate. In fact, the National Association of Realtors reports that international buyers spent $92 billion last year, with 24% of those sales coming from affluent Chinese. In second place, wealthy Canadians followed by the United Kingdom then India.
“We live in an international marketplace, so while all real estate is local, that does not mean that all property buyers are,” said NAR president Steve Brown. “Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability and an incredible opportunity for investment in their future.”
Where do these affluent international buyers spend the most money? Right here in California, of course. These buyers are snatching up high-end condos and waterfront houses in record numbers to use as either vacation/rental homes or their primary residence. Other popular states for foreign investors include Florida, Texas, and Arizona.
Experts say many Chinese buyers see U.S. real estate as a better investment opportunity than is available in China, and in some cases as a safe haven for cash.Some of the main reasons foreigners are buying property in the U.S. include:
- Relocating for a job
- Relocating for children’s education
- Buying properties for investment and portfolio diversification
- Purchasing vacation homes
According to the latest statistics, 60% of these foreign buyers pay cash for their high-end real estate purchases.
This steady growth of US residential real estate sales by international buyers has been on the rise since 2012 and is expected to continue, as our economy grows even more global. Technology is one of the main factors helping drive sales overseas.
San Francisco is a prime destination for wealthy Chinese homebuyers. In California, we ranked #2 after Los Angeles for this affluent group. If you are thinking of moving here or contemplating selling your San Francisco home, please feel free to contact me via email at Daniel.DerVartanian@sothebyshomes.com or by direct line at 415.901.1727. In the meantime, be sure to check my website for San Francisco real estate listings.