This month, the National Association of Realtors (NAR) published their 2016 Profile of International Activity in U.S. Residential Real Estate. This is a survey of 5,960 realtors based on their transactions with international clients between April 2015 and March 2016.
The report classified clients as:
Non-resident foreigners: Non-U.S. citizens with permanent residences outside the United states.
Resident foreigners: Non-U.S. citizens who are recent immigrants (in the country less than two years at the time of the transaction) or temporary visa holders residing for more than six months in the United States.
In 2016 non-residents purchased $44 billion worth of residential property and residents purchased $59 billion. The average purchase price paid by foreign buyers was $491,400 and the average paid by residents was $467,400. Five states accounted for 51% of the total residential property purchases by foreigners: Florida (22%), California (15%), Texas (10%), Arizona (4%) and New York (4%).
Even though these international clients come from across the globe, 21% came from Latin America and the Caribbean. Most of the foreign buyers from Latin America and the Caribbean, purchased properties in: Florida (36%), Texas (36%), California (14%), New York (14%) and Arizona (6%).
The study focused on the international buyers’ top 5 countries of origin, so we are going to focus on Mexico since it made the list:
- The dollar volume of sales of Mexican foreign buyers was $4.8 billion in 2016.
- 17,881 properties were purchased.
- The average purchase price was $266,188.
- Among Mexican foreign buyers, 21% were non-resident.
- They purchased properties in: Texas (35%), California (19%), North Carolina (6%) Illinois (5%), Florida (5%) and 30% in other states.
It doesn’t look like these numbers are going to go down. As a matter of fact, 44% of the realtor respondents expect increased activity with international clients. These clients are buying in the United States, and also abroad. Fourteen percent of the realtor respondents had U.S. domestic clients who were interested in purchasing property abroad; Mexico, Costa Rica, and Colombia are on the list of countries that generated the most interest.
If you are a recent immigrant who is interested in buying property in United States, sit down with a local real estate professional today and review your options.