Although it’s no secret that sales from international home buyers are a high point, the numbers within the past year have been drastic. In the United States, international sales reached $92.2 billion dollars, with 230,000 units being purchased. As that evens out to 630 units purchased per day, international sales have increased 35% within the past year, up from last year’s $68.2 billion. Furthermore, about 28% of the agents who reported to the National Association of Realtors have worked with international clients in the last year.
So why is this number so high? In the United States, the exchange rate is advantageous to foreign buyers, causing American homes and rentals to be much more affordable. In addition, many international buyers seek the desirable lifestyle that Americans take advantage of, including our people, schools, culture, and customs. Lastly, America will always remain a sound place to invest in, and real estate can act as investment security for international buyers. Although our dollar is getting stronger, making the rates for foreign buyers more expensive and their purchasing power less, the U.S. will always be one of the best places to hold money.
With these three factors being said, it will be interesting to watch the housing market in the next year. Will international sales continue to increase as our dollar gets stronger? One can only presume for it to be so.
Jim Lowenstern 