WASHINGTON, D.C. – (By Dale King, Realty News Report) — International buyers who once eagerly pursued U.S. homes as primary residences, vacation properties, or investment stopovers are increasingly choosing locations outside the United States, a trend that has persisted for some time, according to a new National Association of Realtors (NAR) report.
NAR’s 2024 report, “2024 International Transactions in U.S. Residential Real Estate,” found international purchasers bought $42 billion in U.S. residential real estate from April 2023 through March 2024, a decline of 21.2 percent compared with the prior 12 months. The number of existing homes sold to international buyers totaled 54,300—the lowest figure since NAR began tracking these transactions in 2009—representing a 36 percent drop from the previous year.
NAR Chief Economist Lawrence Yun attributed much of the decline to currency strength and market conditions. “The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners,” Yun said in the report. “Therefore, it’s not surprising to see a pullback in U.S. home sales from foreign buyers.”
Yun also noted that many of the same constraints affecting American buyers—limited housing inventory and rising prices—are reducing purchases by international clients. “Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike,” he said.
Despite the overall decline in transactions, prices paid by international buyers reached record highs. NAR reported the average purchase price paid by international buyers was $780,300, with a median of $475,000—both the highest values recorded in NAR’s historical data. Yun explained this reflects the broader uptick in U.S. home prices, where the median price for all existing homes climbed to $392,600.
The NAR report classifies international buyers into two groups:
- Non-resident foreigners: Non-U.S. citizens whose primary residence is outside the United States. This group bought $19.4 billion worth of existing homes—down 35 percent year-over-year—and accounted for 46 percent of the dollar volume of international purchases. Overall, international buyers represented 2 percent of the $2.1 trillion in U.S. existing-home sales during the period.
- Resident foreigners: Non-U.S. citizens who either are recent immigrants (in the U.S. less than two years at the time of the transaction) or non-immigrant visa holders who live in the United States more than six months for work, education, or other reasons. This group purchased $22.6 billion in existing homes, a decline of 3.4 percent from the prior year, and made up 54 percent of the dollar volume of international purchases.
The report highlights notable differences by country and state. Chinese buyers led in average purchase price at $1.3 million, with 25 percent of those purchases located in California. Overall, 18 percent of international buyers purchased properties priced above $1 million between April 2023 and March 2024.
Canada remained the largest source of international buyers by share, accounting for 13 percent of international purchases of U.S. existing homes, followed by China and Mexico at 11 percent each, and India at 10 percent. In terms of dollar volume, China topped the list at $7.5 billion—continuing a trend since 2013—followed by Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion), and Colombia ($0.7 billion).
Geographically, Florida held its position as the most popular state for foreign buyers for the 16th straight year, capturing 20 percent of international purchases. Texas was second at 13 percent, and California third at 11 percent. Arizona accounted for 5 percent, while Georgia, New Jersey, New York and North Carolina each represented 4 percent of international buyer activity.
Alex Escudero, NAR’s director of global strategy, emphasized the importance of international investment to local economies. “Fostering economic investment in culturally dynamic communities, businesses, and industries is a top priority for NAR,” Escudero said. “Our work provides members and their communities with tools, resources and data to identify and highlight international investment opportunities in U.S. real estate.”
He added that the United States, as the world’s largest economy and a longstanding destination for immigrants, continues to attract people who want to live, work and study in the country. “International clients are an important market niche served by Realtors,” Escudero said.
NAR has conducted this survey annually since 2009 to measure the volume of residential real estate transactions involving international clients, document buyer origins and preferences, and identify the challenges and opportunities Realtors face when serving foreign buyers.
The findings in the 2024 report are based on an online survey conducted April 4–May 19, 2024. The survey was sent to 150,000 randomly selected Realtors and members of state and local associations. A total of 17,060 Realtors responded, and 1,407 reported having completed transactions with international residential buyers during the survey period.
July 31, 2024 Realty News Report, Copyright 2024
Image: CALPix Copyright 2024
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File: Sales to International Buyers Down 21 Percent