Most Chinese homebuyers are using cash to pay for expensive homes in the United States.
According to the National Association of Realtors, Chinese buyers made up 12 percent of the market of foreign homebuyers in the 12 months ending March 31. They shelled out a median $425,000, compared with the median of nearly $276,000 spent by other foreign homebuyers. Close to 70 percent of the transactions by Chinese buyers were all-cash.
Good neighbors make good buyers
Canadians were still the largest group of foreign homebuyers, at 23 percent of the market. The median home price for this group was $183,000. Mexicans made up 8 percent of the market, spending a median $156,000.
Foreigners spent $68.2 billion on homes in the 12 months ending March 31. Because of the high price per home purchased by Chinese buyers, that group accounted for 18 percent of the dollar total. Part of the reason is attributable to location: More than half the homes sold to foreign buyers in pricey California were sold to Chinese buyers.
Hottest states for foreign buyers
Along with California, three other states accounted for 58 percent of home sales to foreigners: Florida, Arizona and Texas. Canadians, in particular, are attracted to the retirement lifestyle in Sun Belt states.
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