In light of economic and cultural issues in other countries, the US has seen a spike in foreign cash investors which in turn has attributed to the drive up in prices that the US housing market has recently experienced.
According to statistics from the National Association of Realtors (NAR), the median price for all types of homes have had a 5.6% increase in the month of July compared with a year ago to $234,000.
Chinese investors are playing a significant role in this trend and for the first time have surpassed Canadians as the top foreign buyers with a $28.6 billion in US home purchases, at an average price of $831,800 (According to the NAR). China’s economic and political limitations is increasingly driving many Chinese investors to want to protect their assets by investing in the US Housing Market which is seen as the best place to currently invest. 27.5% of the $104 billion that foreign buyers spend on US homes is contributed to Chinese investors.
While in the overall spectrum of the US housing Market, foreign buyers only account for 4% of existing home sales, investors usually go for the high end inventory and therefore their purchases amounts to 8% of the existing sales when considered in terms of dollar amounts.
25% of all real estate sales in Florida and 90% of all residential sales in Downtown Miami are from foreign investors which puts Florida on the top when it comes to Investor’s choice in Real Estate investment.
South Florida’s Luxury Condo market is particularly attractive to the Brazilian market. With their love for shopping, the water & the brand name products, Brazilians account for a majority of the sale of high end properties.
REFERENCES: WOLF STREET
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Connie Cabral Group
Berkshire Hathaway HomeService Florida Realty
18901 N.E. 29th Ave. Suite 100
Aventura, FL 33180