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As the U.S. dollar gained strength compared to many international currencies, the number of existing homes in the U.S. that international buyers purchased from April 2023 to March 2024 sharply declined, hitting a low not seen since the National Association of Realtors began tracking the data in 2009, the association reported on Wednesday.
International buyers purchased $42 billion worth of existing residential properties from April 2023 to March 2024, down by 21.2 percent from the same period one year before, according to NAR’s most recent International Transactions in U.S. Residential Real Estate report.
Foreign buyers purchased 54,300 existing homes, down 36 percent from the year prior.
In total, 4.09 million existing homes sold in 2023, which was down 18.7 percent from 2022 and marked the lowest number of existing-home sales since 1995.
“The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners,” NAR Chief Economist Lawrence Yun said in a statement. “Therefore, it’s not surprising to see a pullback in U.S. home sales from foreign buyers.”
Credit: National Association of Realtors’ 2024 International Transactions in U.S. Residential Real Estate report
Foreign buyers living in the U.S. as recent immigrants or with visas that allow them residency bought $22.6 billion worth of existing homes, which was down 3.4 percent from the previous year. That share of foreign buyers represented 54 percent of the dollar volume of all international buyer purchases.
Those foreign buyers who live abroad purchased $19.4 billion worth of existing homes, a decline of 35 percent year over year, representing 46 percent of the dollar volume of all international buyer purchases.
International buyers represented 2 percent of the $2.1 trillion in total U.S. existing-home sales between April 2023 and March 2024.
“Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike,” Yun said.
Given that the median purchase price for existing homes in the U.S. climbed to $392,600 during this period, it’s no surprise that the average and median purchase price for existing homes among foreign buyers were the highest they have ever been. The average purchase price rose 21.9 percent year over year to $780,300 and the median climbed 19.8 percent on an annual basis to $475,000.
Chinese buyers had the highest average purchase price across the U.S. at $1.3 million. One-quarter of Chinese buyers purchased homes in California.
Credit: National Association of Realtors’ 2024 International Transactions in U.S. Residential Real Estate report
Overall, 18 percent of international buyers purchased properties worth more than $1 million during this period.
International buyers from Canada (13 percent), China (11 percent), Mexico (11 percent) and India (10 percent) made up the greatest share of all international buyers.
In addition to holding the title of the highest average purchase price, Chinese buyers also represented the greatest amount of total sales volume at $7.5 billion, upholding a longstanding trend. Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion) and Colombia ($0.7 billion) represented the remaining top countries by sales volume.
Reigning as champion for the 16th consecutive year, Florida was the most desired destination for foreign buyers, and made up 20 percent of all such purchases. Texas (13 percent) and California (11 percent) were the next high in demand destinations, followed by Arizona (5 percent), Georgia, New Jersey, New York, and North Carolina (4 percent each).
Despite being the most popular state for foreigners to invest in, Florida is also one of a handful of states attempting to prevent select foreign buyers from purchasing real estate within its borders. In May 2023, Governor Ron DeSantis signed Senate Bill 264, which limits real estate purchases made by citizens of China, Russia, Iran, North Korea, Cuba, Venezuel and Syria. The bill has faced a number of lawsuits, including from the Asian Real Estate Association of America, which has alleged the bill violates fair housing laws.
All-cash sales represented half of all international-buyer purchases from April 2023 to March 2024, compared to just 28 percent of all existing-home purchases. Non-resident foreign buyers were also much more likely to make all-cash purchases, at 68 percent of buyers, than resident foreign buyers, who made up just 36 percent of cash sales.
Canadian (69 percent) and Chinese (68 percent) buyers made up the highest shares of all-cash purchases among foreign buyers.
Alex Escudero, NAR’s director of global strategy, added that cultivating an international network among the real estate community is an important part of NAR’s work.
“Fostering economic investment in culturally dynamic communities, businesses, and industries is a top priority for NAR,” Escudero said in a statement.
“Our work provides members and their communities with tools, resources and data to identify and highlight international investment opportunities in U.S. real estate. This supports local communities to drive economic development in markets across the country. NAR and the Realtor brand have developed a network of more than 8,000 international Realtor members outside of the USA and expanded our global footprint to more than 100 real estate organizations across 78 countries, providing growth opportunities by ensuring ethical and accessible markets that allow our members to make direct connections with global-minded real estate professionals and international investors.”
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