U.S. international home sales are at an all-time high, hitting $153 BILLION in the period of April 2016 – March 2017, according to the newest report from the National Association of REALTORS®. That’s a 49% increase over the previous year! So what caused this huge increase?
Economic Factors that Affect U.S. International Homes Sales
Global economic growth rose to 3.5 percent in 2016, and growth is expected to be sustained at 3.6 percent in 2017 (3.1 percent in 2015)
China’s economy grew at a healthy pace of 6.7 percent in 2016, supported by increased public infrastructure and strong credit growth
Canada’s economy grew at a stronger pace of 1.4 percent in 2016, up from less than one percent in 2015. Mainly due to firmed oil prices.
In the United Kingdom, consumer spending remained strong and economic growth tapered only modestly in the aftermath of the Brexit
Partly due to the recovery of oil and commodity prices, the economic area of Latin America and the Caribbean climbed out of economic recession
Key Findings: 2017 Profile of International Home Buying Activity
International Home Sales in the U.S. are at an All-Time High
For the 12-month period of April 2016 – March 2017, the amount of total international home sales rose from $102.6 billion to $153 billion.
This 49% increase is an all-time survey high and accounts for 10% of the dollar volume of existing home sales.
Five Countries Continue to Dominate U.S. International Home Purchases
International home buyers in the U.S. came from all over the globe, but there are five countries that continue to account for the bulk of U.S. home purchases, each of which saw increases since the 2016 survey:
China – $31.7 billion (+16% y-o-y)
Canada – $19 billion (+113% y-o-y)
United Kingdom – $9.5 billion (+73% y-o-y)
Mexico – $ 9.3 billion (+94% y-o-y)
India $7.8 billion (+28% y-o-y)
Together, they make up over 50% of the total dollar volume of international home sales. The bulk of buyers from China, India, and Mexico were resident buyers, while most buyers from Canada and the United Kingdom were non-resident buyers.
Top Destinations for International Buyers
New Jersey has joined the ranks of the top states attracting international home buyers, along with long standing Florida, California, Texas, and Arizona. Together, these five states accounted for 54% of purchases by international buyers, up 3% since last year. Top deciding factors continue to include proximity to the home country, the presence of relatives, friends and associates, job and educational opportunities, as well as climate.
Despite the fact that international buyers have purchased a large amount in certain states, there is opportunity in many markets across the country.