Top Buyers of U.S. Real Estate are Chinese for 4th Year

Chinese buyers were the top foreign purchasers of U.S. real estate for the fourth year in a row, a survey released Wednesday showed.

The National Association of Realtors reported that Chinese buyers bought 29,195 properties worth $27.3 billion in the 12 months ending March 2016. At a median price of $542,084, the typical Chinese purchase was more than double the median U.S. existing-home price of $223,058, showing that the acquisitions were made by the burgeoning Chinese elite.

Chinese purchases were more than triple that of the number-two nation, Canada, which had $8.9 billion of U.S. properties. India ranked third with $6.1 billion of purchases, and Mexico fourth at $4.8 billion.

That said, foreign purchases of U.S. real estate actually declined slightly, by 1.3% to $102.6 billion of residential property. The NAR said that decline came due to a stronger U.S. dollar and a weak global economy, as well as rising U.S. house prices.

Even the Chinese purchases fell, by 4.5%.

Lawrence Yun, chief economist of the NAR, said British purchases may subside after the vote to leave the European Union, which has sent the pound GBPUSD, -0.9906% down sharply. Britain accounted for $5.5 billion worth of purchases in this survey, ranking fifth-highest.

Latin Americans, Europeans and Canadians mostly sought properties in Florida and Arizona. California and New York drew the most Asian buyers, the NAR said.

Source: Marketwatch