At $42 billion worth of sales, international buyers purchased one-fifth (21.2%) less U.S. real estate from April 2023 to March 2024. The 54,300 existing homes sold is 36% fewer annually, and the lowest since the National Association of Realtors (NAR) began tracking in 2009.
International buyers accounted for 2% of the $2.1 trillion in total U.S. existing-home sales during that period.
“The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners,” said NAR Chief Economist Lawrence Yun, accounting for the decline. “Therefore, it’s not surprising to see a pullback in U.S. home sales from foreign buyers.”
The average and median purchase prices for foreign buyers were the highest ever recorded by NAR, at $780,300 and $475,000, respectively. The top destinations for foreign buyers in the U.S. were Florida (20%), Texas (13%), California (11%), and Arizona (5%), followed by Georgia, New Jersey, New York and North Carolina (4% each). Florida has remained the top destination for foreign buyers for 16 consecutive years.
The increase in prices for foreign buyers reflected the overall price increase for all U.S. existing homes, which climbed to $392,600. All-cash sales accounted for half of international buyer transactions compared to 28% of all existing-home buyers.
At $1.3 million, Chinese buyers had the highest average purchase price, with 25% purchasing property in California. In total, 18% of international buyers purchased properties worth more than $1 million during the 12-month period.
“Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike,” Yun added.
Canada led all countries of origin in the share of foreign buyer purchases of U.S. existing homes at 13%, followed by China and Mexico (11% each), then India (10%). China was first in U.S. residential sales dollar volume at $7.5 billion, which continues a trend dating back to 2013. Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion) and Colombia ($0.7 billion) rounded out the top five.
Non-resident foreign buyers (68%) were more likely to make an all-cash purchase than resident foreign buyers (36%). More than two-thirds of Canadian (69%) and Chinese (68%) buyers made all-cash purchases, the highest shares among the top foreign buyer nations.
“Fostering economic investment in culturally dynamic communities, businesses, and industries is a top priority for NAR,” said Alex Escudero, NAR’s director of global strategy. “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."
