In the 12 months to March, foreign purchasers bought $82 billion worth of US property, which is an increase of 24% on the previous year, according to figures from the National Association of Realtors. Canadian buyers accounted for 23% of these sales, with China accounting for 9%, while the UK, Mexico and India all accounted for 7% each. Brazilian and Argentinian buyers, if counted collectively accounted for 5% of all sales, up from just 2% in 2010.
The attractions of America property are easy to see as the weak dollar and falling prices make it easy for overseas buyers, who frequently paying cash to pick up a real bargain. According to property website Zillow, and prices fell by 8.2% during the first quarter, while Standard & Poor's/Case Shiller index shows prices are down by around 33% since their peak in July 2006.
Apparently overseas buyers accounted for 8% of the American housing market which was worth $1.07 trillion to the year ending in March 2011, and half of the sales which were worth $41 billion were to immigrants who have moved to the country in the last couple of years, while the other half of sales were to international investors. A notable proportion of high-end properties are now sold to Russian buyers who see it as a status symbol to have a luxury property in the US, and the number of billionaires in Russia is increasing as out of the 214 newcomers to Forbes magazine list, 31 were from Russia, and Moscow now has 79 billionaires compared to New York's 58.
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