International homebuyers are shying away from the U.S. market. These buyers had 21 percent fewer closings in March 2018 than the year before, per National Association of Realtors data.
Buyers from outside the United States typically spend more on real estate than do domestic homebuyers, with a median spent on homes 17.3 percent higher than for all buyers in the nation for existing homes. The NAR report did not include new home sales, which international buyers tend to favor, Realtor.com reports. Chinese buyers spent the most on U.S. real estate between April 2017 and March 2018, $30.4 billion on roughly 40,400 units; this was a four percent YoY drop. Gay Cororaton, a research economist at NAR, explains, "The slowdown came from purchasers from Canada, Mexico, the United Kingdom, and other countries."
Those who are still buying are typically not looking at the same kinds of communities the locals are clamoring for. They're seeking out more full-service communities with lots of amenities and on-site property management companies to make it easier for them to rent out the properties—versus regular, older houses in the suburbs. And these foreign ballers often aren't competing with locals on a budget. "There's such a small percentage of individuals who can afford these residential properties in these major markets," attorney Mermelstein says.
PB Topical Ref
