|
Getting your Trinity Audio player ready...
|
| Each week, the Silicon Valley Association of Realtors (SILVAR) shares local housing data, sales trends, expert insights and other real estate-related topics. This week, the association looks at how foreign buyers are impacting the U.S. real estate market based on a newly released report from the National Association of Realtors. |
The number of homes purchased by overseas buyers has jumped for the first time since 2017, signaling a possible turning point in international interest in the U.S. real estate market, according to a recent report from the National Association of Realtors.
From April 2024 through March 2025, foreign buyers purchased 78,100 residential properties nationwide, up 44% – or the equivalent of 23,800 more transactions – compared with the previous year.
Overall dollars spent on U.S. homes also jumped with buyers pouring $56 billion into the real estate market – about a 33% increase from the previous year. The median price they paid on a home purchase reached a record-high of $494,400, which is more than the national median sales price of $408,500 recorded during the same period. Of the foreign buyers who bought homes during this period, nearly 1 in 5 (18%) purchased properties worth more than $1 million.
California saw much of this activity. The state ranked as the top destination for Chinese citizens, who represented the biggest share of overseas buyers and accounted for nearly a quarter ($13.7 billion) of overall dollars foreigners spent on housing. This amount is more than double the $7.5 billion Chinese buyers spent a year earlier, the report shows.
KEY FINDINGS
$56 BILLION Dollar volume of residential purchases, up 33.2%
78,100 Number of home purchases, up 44% (1.9% of all U.S. home sales)
56% Foreign buyers who reside in the United States
$494,400 Median purchase price, up 4.1%
47% Buyers who paid all-cash
47% Buyers who purchased a property for use as a vacation home
Despite the uptick in transactions and dollars spent, overall activity by international buyers remains the second-lowest level since the association began tracking such data in 2009.
“Foreign buyers are drawn to investing in American real estate, in part, by our country’s strong protection of private property rights,” Lawrence Yun, chief economist for the National Association of Realtors, said. “However, elevated home prices and interest rates continue to dampen overall potential sales activity and remain well-below pre-pandemic levels.”
Here’s a deeper look at how foreign buyers are impacting the U.S. housing market. (It’s important to note that the data in the report was captured prior to the budding trade-war tariffs with China and other countries and does not include information on how the changing global economy may be impacting foreign buyers in the U.S.)
China and Canada outpace other countries
After trailing Canada last year, China now ranks as the top country of origin among foreign buyers, accounting for 15% of all homes purchased among international buyers. Canada fell just behind at 14%, followed by Mexico (8%) and India (6%). The United Kingdom had the fifth-largest share at 4%.
China remains the largest foreign buyer in terms of the amount of money spent on home purchases. Chinese buyers spent $13.7 billion on the purchase of homes in the U.S., up significantly from $7.5 billion compared to the previous year. On average, Chinese buyers spent $1.2 million per home as they purchased in expensive states: 36% of Chinese buyers purchased a property in California, and 9% purchased in New York and Maryland.
Canada spent the second most on home purchases ($6.2 billion), followed by Mexico ($4.4 billion), India ($2.2 billion), and United Kingdom ($2 billion).
California moves up to #2 overall destination
For the 16th consecutive year, Florida remained the top destination for foreign buyers, accounting for 21% of all international purchases. At 13%, California moved ahead of Texas (10%) as the second most popular destination for buyers. New York (7%) and Arizona (5%) followed as the nation’s fourth and fifth top destinations.
The majority – 57% – of California’s foreign buyers came from Asia/Oceania, followed by Latin America (18%). It was the top destination among Chinese buyers and the second top destination among Mexican, Indian and U.K. buyers.
All-cash offers stay steady
Of the international buyers who purchased homes in the U.S., nearly half (47%) made all-cash purchases, compared to 28% among all buyers, according to the report.
“Due to tight competition among the limited homes on the market, differing currency exchange rates,and relatively stagnant mortgage rates, foreign buyers tend to make all-cash purchases,” the report states.
All-cash offers accounted for 56% of home purchases made by non-resident foreign buyers compared to 39% among foreign buyers who live in the U.S.
More than two-thirds of Chinese buyers (71%) and approximately three-fifths of U.K. (61%) and Canadian (57%) buyers made an all-cash purchase, compared to just under half of Mexican buyers (49%). Asian Indian buyers had the lowest share of cash sales, at 43%, as nearly all (97%) reside in the U.S. and more often obtain mortgage financing.
Vacation homes on the rise
Nearly half of foreign buyers (47%) purchased property for use as a vacation home, rental property, or both, a slight increase from 45% last year. According to the report, more than half of foreign buyers who live abroad (60%) purchased a property for vacation or rental compared to 36% of foreign buyers who reside in the U.
Canadian buyers were the most likely to purchase a home solely for vacation use at 49%, followed by U.K. buyers (27%). Asian Indian buyers were the most likely to purchase a home for primary residence use at 66%, followed by Mexican (53%) and Chinese (45%) buyers. Buyers from the United Kingdom (18%) and China (16%) were more likely to purchase a home for student use, according to the report.
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
Real Estate Editor Linda Taaffe contributed to this article.
