Chinese Topped International Home Buyers In US
The Chinese were the largest group of foreign buyers of US homes in the year ended 31 March.
A National Association of Realtors (NAR) survey for the 2nd year running showed that Chinese nationals topped international home buyers in the US, with purchases of 29,195 homes totaling about $27-B from April 2015 through March 2016 according to the data.
The 2nd-place Canadians bought 26,851 homes totaling just $9-B, preferring vacation locales to homes in pricey suburbs, in states from New York to California to Washington.
Chinese buyers paid $936,615 per home on average during the frame, up from $831,761 a year earlier, and far more than the average $477,462 paid by all international buyers, according to the NAR.
US home buyers paid only $266,683 on average.
The dominance of Chinese buyers is “striking,” Lawrence Yun, chief economist at the real estate trade group, said. And about 71% of Chinese buyers pay these large sums in cash.
Many of the Chinese home buyers have been in America for 2 years or less. The Chinese view home ownership “as a very important part of their dream in their newly adopted country,” Mr. Yun says.
And 64% of all homes bought in 2015-16 were in the suburbs, up from 46% last year. Mr. Yun said that the Chinese buyers, many with families, seek suburbs with quality public schools.
The National Association of Realtor’s 2016 Profile of International Activity in US Residential Real Estate, which took into account home sales to international clients between April 2015 and March 2016, found that foreign buyers purchased $102.6-B in residential properties, a 1.3% drop compared to the prior year’s survey.
Meanwhile, home prices have hit record highs in some major US metropolitan areas, and house-flippers are behaving like it is Y 2005. People are chattering about another housing bubble.
The structural issues that led to the housing collapse in 2007/2008 are not present. What happened during the last cycle was the result of building too many homes and of speculation fueled by loose credit. That is not the case today.
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