A recent survey of the National Association of Realtors in the USA found that in the 12 months to March 2010, agents saw a marked increase in the interest of foreign buyers.
Whilst still down from the lofty heights of 2007 when 32% of agents reported contact with foreigners, figures were up 5% to 28% in the 12 months surveyed. Furthermore, actual purchases in the period jumped 6% to 18% which represented $66 billion USD of property, or approximately 7% percent of the total market. Just four states, Florida, California, Arizona and Texas, accounted for 53% of all purchases.
Canada remains the source of the most overseas buyers, whilst Mexico moved into second place with 10% of the buyers, replacing the UK, which fell to 9%.
Additionally, the median price paid for property fell from $247,000 to $219,000 USD.
The figures suggest that foreign buyers, witnessing a depressed US housing market, were bargain shopping, and there were plenty of bargains to be had. And with credit being harder to come by, with more hoops to jump through, there’s no surprise that with 55% of foreign buyers purchasing in cold, hard cash, that they managed to squeeze bargains.
To read the report CLICK HERE
Austin, Texas
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There was also an increase in property investment in Australia and London from foreign investors.