China Dominates Foreign Purchases of U.S. Homes

Foreign purchases of U.S. residential real estate increased by 35% last year, with Canadians accounting for the largest segment of international buyers by sales volume at 19%. However, China has emerged as the largest source of transactions on a dollar basis, at 24%. The median price the Chinese pay for a U.S. home is over $500,000, and California real estate agent Maggie Navarro even reports that many Asians buy $3 million+ homes and pay in all cash. The Chinese also represent the fastest growing buyer segment: the National Association of Realtors reveals that the Chinese spent $22 billion on U.S.  housing in the past year through March, which is 72% more than they spent the preceding year. This trend can be partially attributed to favorable exchange rates, a possibly overvalued Chinese housing market, increased access to credit, the desire for secure investments, and political instability at home.  Many Chinese immigrants settle in Irvine and L.A.'s San Gabriel Valley, which has a long-standing Asian population. This is supported by the fact that commercial air traffic between L.A. and mainland China has risen by over 400% since 2003. Other popular destinations are cities in New York (especially Manhattan) and Washington state.