We took note recently of a National Association of Realtors (NAR) report that said buyers from China have surpassed Canadians, Europeans, Mexicans and Middle Easterners as the top overseas purchasers of homes in the United States.
According to the NAR, Chinese investment in U.S. residential real estate has grown from a measly $50 million in 2000 to an eye-popping $28.6 billion in the year ending March of 2015. That’s an increase of 72 percent from a year earlier – double the amount spent a year earlier – that surpassed all other foreign buyers.
William Yu, an economist at the UCLA Anderson Forecast, said political and economic instability in China are growing concerns for wealthy Chinese.
“China’s real estate market has peaked already,” said Yu as quoted in an Inman News story. “Their housing bubble has popped. For economic and political reasons, Chinese investors want to protect their wealth by diversifying their assets, buying U.S. real estate and moving out of the country.”
NAR reported that overseas homebuyers spent a record $104 billion buying U.S. homes this past year (ending in March of 2015), with Chinese buyers leading the pack. In the 2014 survey, foreigners spent $92 billion on U.S. homes over a 12-month period, up from 35 percent from a year earlier.
What does this all mean? Well, it’s quite apparent that the U.S. continues to welcome one and all. And, of course, we are poised to do likewise at First International Title.