The National Association of REALTORS® just released their 2021 International Transactions in U.S. Residential Real Estate Report. The annual report, which includes data from April 2020 to March 2021, showed a decline in foreign investment of U.S. properties, with dollars spent down 27% and sales volume down 31%, largely due to the COVID-19 pandemic. Here are other major takeaways from the report:
TOP FIVE FOREIGN BUYERS OF U.S. PROPERTIES BY SALES DOLLAR VOLUME:
- Canada
- Mexico
- China
- India
- United Kingdom
TOP U.S. DESTINATIONS FOR FOREIGN BUYERS:
- Florida (22%)
- California (15%)
- Texas (9%)
- Arizona (5%)
- New York (4%)
- New Jersey (4%)
ILLINOIS PURCHASES:
- 3% of foreign buyers from Mexico purchased in Illinois
- 3% of foreign buyers from China purchased in Illinois
- 4% of foreign buyers from India purchased in Illinois
TOP COUNTRIES OF INTEREST FOR U.S. CLIENT PURCHASES:
- Mexico (7%)
- Canada (5%)
- China (4%)
- Costa Rica (3%)
- Dominican Republic (2%)
- Spain (2%)
- Argentina (2%)
ADDITIONAL TAKEAWAYS:
- 45% of REALTORS® who work with international clients reported the pandemic had no impact on their international client business.
- Most foreign buyers purchase U.S. property for a vacation or second home destination. Chinese buyers were most likely to purchase a home for student or accounting purposes.
- Personal contacts, former clients and referrals from former clients and business contacts accounted for 65% of leads and referrals among agents who worked with foreign clients. Website and online listings accounted for 17%.
- 8% of respondents who had a client, whether international or not, seeking a foreign property outside of the U.S.