Foreign investment in existing homes in the U.S. fell 9.6 to $53.3 billion

WASHINGTON (August 1, 2023) - Overseas buyers purchased $53.3 billion worth of real estate in the U.S. from April 2022 through March 2023, a 9.6% decline from the previous 12-month period, according to a new report from the National Association of Realtors (NAR).

Out-of-state buyers purchased 84,600 properties, down 14.2% from the previous year and the lowest since 2009, when NAR began tracking this data.

Together, existing home sales in the U.S. totaled 5.03 million in 2022, down 17.8 percent from 2021.

NAR chief economist Lawrence Yun said: "A substantially reduced U.S. housing inventory and an increase in borrowed''rates around the world have negatively impacted international buyers for the second year in a row. However, a recovery in international travel after the end of the pandemic will lead to an increase in overseas transactions in the months and years ahead. "

Survey "Profile of International Real Estate Transactions in the U.S. in 2023 "

The survey, conducted by NAR, focused on transactions with international clients who bought and sold real estate in the U.S. between April 2022 and March 2023.

Foreign buyers living in the U.S. as recent immigrants or holders of visas allowing them to reside in the U.S. purchased $23.4 billion worth of real estate, down 31.4 percent from the previous year and accounting for 44 percent of total transaction volume.

Foreign buyers,'''living abroad purchased $29.9 billion worth of real estate, up 20% from the previous year and accounting for 56% of total transaction volume.

International buyers were involved in 2.3% of the $2.3 trillion in total existing home sales in that period.

The average sales price ($639,900) and median price ($396,400) of the homes they sold were the highest ever recorded by NAR - and 7% and 8.3% higher, respectively, than the previous year.

The price increase for overseas buyers mirrored the rise in U.S. home prices, as the median sales price of all existing homes in the U.S.

The median price range among buyers from China was 1.23 million''dollars, and 33% of them purchased real estate in California. A total of 15% of foreign buyers purchased properties worth more than $1 million between April 2022 and March 2023. China and Canada maintain the lead in U.S. residential real estate sales at $13.6 billion and $6.6 billion, respectively, continuing a trend that began in 2013. Mexico ($4.2 billion), India ($3.4 billion) and Colombia ($0.9 billion) rounded out the top five.

"Home purchases by Chinese buyers rose after China eased the strictest isolation measures due to the pandemic, while buyers from India were helped by the country's rapid economic development," Yun added. "The strengthening of the Mexican peso against the dollar'''foreign buyers (32%). Colombian buyers (67%) from the first five countries were the most likely to make a cash transaction. About half of Canadian (51%) and Chinese (47%) buyers made cash transactions. Indian buyers were the most unlikely buyers to execute cash payments, at just 15%.

Half of overseas buyers purchased a property for use as a holiday home, rental property or both - which was up from 44% in the previous year. Nearly three-fifths of overseas buyers (59%) purchased detached single-family homes.

"Promoting economic investment in culturally vibrant communities, businesses and industries is a priority for NAR," said''real estate in the U.S. in 2023' can be viewed at: nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate.

The National Association of Realtors® is the largest trade association in America, representing more than 1.5 million members involved in all aspects of residential and commercial real estate. The term Realtor® is a registered collective membership mark identifying a real estate broker who is a member of the National Association of Realtors® and adopts its strict Code of Ethics.