Home Sales to Foreigners—Down In Number but Up in Value

Existing-home sales (EHS) to foreign buyers were approximately 8 percent of the total U.S. existing-home sales market of $ 1.3 trillion for the 12 months ending March 2015 according to NAR’s recently released 2015 Profile of Home Buying Activity of International Clients. The reported 209,000 transactions—approximately 4 percent of total existing-home sales—were down from the 232,600 delineated in the previous report.  However, foreign buyers are an upscale group—purchasing homes well above the average market price.  During 2014/15 the average price foreign clients paid for a house was $500,000, compared to the overall U.S. average house price of $256,000.  Approximately $54.5 billion of sales was attributed to non-resident foreigners, with resident foreigners accounting for $49.4 billion of sales.

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Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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