The latest ‘Profile of International Transactions in U.S. Residential Real Estate 2018′ shows that foreign buyers were purchasing fewer U.S. homes and for lower average prices compared to the same 12-month period. The latest survey from the National Association of Realtors covers April 2017 through March 2018. Some of the highlights include

  • A decrease in purchases from $153 billion to $121 billion
  • A unit decrease from 284,500 properties to 266,800
  • An average price decrease from $536,900 to $454,400
  • Texas accounted for 9 percent of foreign purchases of homes, behind Florida (19%) and California (14%)
  • For the 6th consecutive year, the Chinese were the largest foreign buyer cohort, purchasing $30.4 billion in U.S. property
  • Canadian purchases of U.S. homes declined 45 percent to $10.5 billion
  • Buyers from the UK had the highest average purchase price of $806,300, followed by the Chinese at $752,600
  • 47 percent of foreign buyer transactions were all cash
  • “Could not find property” was listed as the biggest reason why international clients decided not to purchase

With serious bubbles deflating in Vancouver and Toronto, Canadian purchases of U.S. residential real estate probably won’t be picking up anytime soon. China, on the other hand, still seems to have an appetite for U.S. homes. Chinese purchases of U.S. residential real estate will likely continue as long as the People’s Bank of China is able to keep their own massive real estate-bubble afloat. China’s economy and GDP growth are still heavily dependent on real estate. Capital flight controls from the Chinese government seem to have had minimal effect.