International buyers are very interested in American luxury real estate. In fact, the United States has been named the hottest real estate market for international buyers.
So where are these home buyers coming from?
According to the National Association of Realtors, most of the foreign buyers are coming from the United Kingdom, India, Mexico, Canada and China.
#5. The United Kingdom
Buyers from the UK make up 4 percent of the international buying market. The country spent $5.5 billion in total on American homes.
India follows with 7% and $6.1 billion in purchases. The study found that Indian buyers were the most likely to purchase a primary residence out of these top five.
Mexico is next with 8% of the international buying market, spending 4.8 billion in American real estate purchases.
Our neighbors to the north have bought $8.9 billion worth of homes. Canadians are most likely to purchase vacation homes in the Southwest and Florida to escape their snowy winters.
China’s strong economy shows in these statistics. For the first time, China bought more real estate than other countries–around $27 billion worth of American property. In addition they tend to buy the most expensive homes at an average of $ 936,615. Chinese buyers look for homes on the West Coast for the ample education, business and trade opportunities.
Florida remained the top destination of foreign buyers purchasing U.S. residential properties in 2016, accounting for 22 percent of all foreign buyers who purchased residential property in the United States. In the 12-month period ending in July 2016, foreign buyers purchased $19.4 billion of Florida residential real estate.
Most international buyers pay with cash. However, 44 percent are mortgage buyers. There’s a myth out there that most international buyers will pay all cash and pay more than a property is worth. Not true! Many foreign buyers want bargains and desirable properties.
Origin of Florida’s Foreign Buyers
Florida is one of the top destinations for International Buyers and although most gravitate towards Miami and Fort Lauderdale area, Vero Beach has attracted a number of those with a 100% increase in 2016 compared to 2015 and 2017 is on target for another great year.