Despite paying higher prices for real estate, most Chinese investors don’t plan to spend a lot of time in the U.S. Only 39% purchased their homes as a primary residence.
Homebuilders – like my friend in Seattle – love international buyers. That’s because three-quarters of transactions are done in cash. And every seller prefers a quick closing that doesn’t involve mortgage financing.
International buyers are clearly a big factor in some housing markets. That’s especially apparent in prime markets, with an average sale price above $400,000..
U.S. housing markets have clearly rebounded since the crash of 2008 – 2010. But expensive homes have bounced back far more quickly than lower-priced homes. And the participation of international customers is clearly focused on the high end.
In Middle America, international buyers aren’t having much of an impact. But in places like Bellevue, Washington, international buyers are playing a big role in the bull market for million-dollar homes.
Rising home prices is one of many positive signs for the U.S. economy. In prime markets like Seattle, San Francisco, and New York, expensive home prices should continue to rise more rapidly than the average home in America.
This article is brought to you courtesy of Ian Wyatt from Wyatt Investment Research.