Texas is an increasingly popular hotspot among international property investors, a new infographic from TheMoveChannel.com reveals.
The USA became the number one destination on the property portal for the fifth time this year in June, accounting for 1 in 12 enquiries. Texas has been one of the most popular locations in the last year, accounting for one in five US enquiries in Q1 2017.
According to new figures from the National Association of Realtors, that popularity continues to build, as the state accounting for 12 per cent of all purchases made by foreign buyers in the year to March 2017 – up from 10 per cent in the previous year.
Florida and California remain the most popular destinations among overseas investors, accounting for 22 per cent and 12 per cent of purchases respectively. The fourth and fourth most sought-after destinations were New Jersey and Arizona, with 4 per cent apiece.
Florida was the most popular state for Canadian buyers, while Chinese buyers mostly chose California, and Texas was the preferred state for Mexican buyers.
The National Association of Realtors report also highlights where investors in US real estate are coming from. Chinese investors remain the biggest investors in US real estate, actually increasing their spending to $31.7 billion from $27.3 billion a year ago, reinforcing the USA’s ongoing appeal to investors, even after China’s curbs on capital outflow. Canadian investors doubled their spending year-on-year from $8.9 billion to $19 billion, while spending by UK investors also surged from $4.8 billion to $9.5 billion.
Mexican and Indian investors were the fourth and fifth biggest groups by nationality. According to Realtor data, though, buyers from Mexico and India purchased the third and fourth highest number of properties, with buyers from the UK in fifth, highlighting the difference in budget between nationalities.
Most non-resident foreign buyers made an all-cash purchase (72 percent), while a smaller fraction of resident foreign buyers paid all-cash (35 percent). 29 per cent of respondents to the NAR survey reported working with international clients, about the same fraction as in the previous 12-month period.
The figures arrive as the Federal Reserve has raised interest rates two times this year, boosting confidence in the American economy. that confidence is spreading to investors: the NAR data shows that foreign buyers purchased $153 billion of residential property from April 2016 to March 2017, an increase from $102.6 billion during the previous 12-month period and a record high for foreign investment in residential property.
“The political and economic uncertainty both here and abroad did not deter foreigners from exponentially ramping up their purchases of U.S. property over the past year,” says Lawrence Yun, NAR chief economist. “While the strengthening of the U.S. dollar in relation to other currencies and steadfast home-price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the U.S. is a safe and secure place to live, work and invest.”
Headwinds over the coming year may cause investment to cool slightly, such as rising prices, potential changes in US immigration and trade policies, a lack of housing supply and the strong dollar. At present, though, sales to resident and non-resident foreigners is at a new peak.
Notes to Editor
About Lead Galaxy and TheMoveChannel.com
Founded in 1999, www.TheMoveChannel.com is the leading independent website for international property, with more than 800,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.
TheMoveChannel.com is one of more than a dozen international property sites operated under the Lead Galaxy brand. Lead Galaxy provides online marketing solutions to thousands of property companies worldwide, focusing on portal listings, email marketing, qualified leads, paid search and social media advertising.
The business is headquartered at 24 Jack’s Place, Corbet Place, Shoreditch, London, E1 6NN.
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