NAR's New Report States Foreign Sales of U.S. Properties Declined Last Year | Chicago Association of REALTORS®

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:

  1. Canada
  2. Mexico
  3. China
  4. India
  5. 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.

Check out the full report here.