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June 24, 2011

U.S. Housing Market Still Attracting Foreign Buyers
The latest Profile of International Home Buying Activity, issued this week from the National Association of Realtors, shows that international investors continue to view the U.S. housing market as a favorable place to invest. According to the report, total international property sales to foreign investors came to $82 billion during the year that ended March 31st, up $16 billion from the prior year. Those sales were split between non-residents and recent immigrants, and total sales of existing homes, between foreign and domestic buyers, came to $1.07 trillion.

The U.S. has long been a popular place for foreign investors to buy for a wide range of reasons. U.S. homes are often cheaper than comparable homes in other countries, the U.S. housing market is generally viewed as a safe place for investment, and there are generally more rental opportunities and better long-term appreciation potential in the U.S.

Recently, realtors have noticed new factor that are driving foreign buyers to the U.S. market. A large number of American colleges and universities have significant numbers of foreign-born students, and many families from other countries are buying properties so there children have places to live while attending school. There are also a number of foreign executives working within the United States who prefer to purchase a home rather than rent while they're here.

Of the international home-buyers during the year ended March, 61 percent bought single-family homes while 36 percent purchased a condominium, townhome, or co-op. 62 percent of foreign buyers, the NAR reported, paid cash for their homes. This is significantly higher than the percentage of domestic buyers who pay in cash, mainly because of differences in credit reporting standards between nations.

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