NAR Unveils Extensive Figures on Weight of International Home Buying in U.S. Market

RISMEDIA, August 13, 2008-A report released by the National Association of Realtors reveals hikes in sales and interest in U.S. real estate among foreign buyers for 2008, once again illustrating the value of international investors and homeowners to an otherwise flagging marketplace.

NAR, a trade association with over 1.3 million members, elicited its results by surveying its network of realty professionals. The subsequent study exposes the hotspots for foreign purchasing in the U.S., the preferred properties among the nations with the most active clients, and the median prices they pay.

More foreigners are flocking this year to the West and South to get a piece of prime real estate, according to the report. Arizona, California, Florida, and Texas now lead in sales, but the Northeast has also grown in allure to foreigners, climbing nine percent in that category.

David Michonski, CEO of Coldwell Banker Previews International in New York and a spokesman for NAR, explains that the Northeast is particularly attractive in light of its copious high-profile listings. “Even though the number of unit sales in New York City is much smaller than say Florida, the average price in New York is five times that of Florida. Therefore, on a volume basis we believe that New York’s share of foreign investment is almost as high as Florida’s,” Michonski said.

While foreigners usually choose regions close to their native soil, 2008 has seen geographical diversity in the countries of origin of international clients. Canada remained in first place with 23.6% of international purchases in the U.S., and the United Kingdom took second spot with 12.5%; Mexico was third with 8.7, China fourth with 7.5, India fifth with 6, and Germany sixth with 4.5.

The survey concluded that foreign buyers actually spend more on average for realty than their American counterparts. For all people purchasing in the U.S., the median price fluctuated in the past three years between $229,000 and $195,000, but this year the median home price for foreigners alone exceeded $297,000.

On a more specific level, Chinese and British clients paid the most, with median disbursements of $450,000 and $350,000 respectively.

A significant spike occurred in the number of condos and apartments acquired by foreigners. As the study gathered, most foreigners intend on staying in the U.S. only two to three months a year, yet four out of ten use the home for more than six months annually.

“It is not surprising that foreign buyers are buying condos as they seek a form of ownership that provides the least trouble. Indeed, that form is the condo,” Michonski said.

For more information, call (212) 326-0301 or e-mail dmichonski@cbpreviewsnyc.com.