China remains top buyer of U.S. real estate

National Association of Realtors logo (PRNewsFoto/National Association of Realtors)

National Association of Realtors

http://en.people.cn/n3/2016/0711/c90000-9084192.html

A total of 27.3 billion U.S. dollars, 29,195 houses – What these numbers are saying is China has been the largest buyer of U.S. homes for the second year in a row.

Increasing activity has brought both the dollar volume and number of units sold to levels far exceeding that of any other foreign demographic.

In terms of dollar volume, the Chinese bought 26.7 percent of the total amount of residential property sold,notes Lawrence Yun, chief economist at U.S. National Association of Realtors as quoted by news media on Saturday.

In Profile of International activity in U.S. Residential Real Estate, market researchers at NAR outlined some major trends in Chinese activity in the U.S. market.

Among the major foreign buyers, Chinese buyers tend to purchase residential properties in central cities and suburban areas with relatively higher property prices. The average purchase price among Chinese buyers reached 936,615 dollars, almost three times of that of Canadians, the second most generous buyer group.

About a third of Chinese buyers purchased residential property in California.New York,Texas, Washington, andNew Jersey. With roughly 39 percent of Chinese buyers buying in states other than these top five states, they are among the more broadly geographically distributed foreign buyer groups.

10 percent of Chinese buyers made purchase in the city of New York alone. Other buyer groups tend to purchase properties for vacation purposes, while New York drew Asian buyers most likely for reasons related to geographic proximity, cultural similarities, and job opportunities.

Buyers from China were more likely to purchase residential property for the use of a child studying at a U.S. university. 13 percent of Chinese buyers purchased the property for the use of a student.

Foreign buyers from China were more likely to pay cash.Fifty percent of reported transactions were all-cash sales, while among Chinese this number is 71 percent;only 20 percent obtained mortgage from U.S. sources.

Asia Society and Rosen Consulting Group have also published a joint report on Chinese investment in U.S. real estate, suggesting that Chinese investors have spent 110 billion dollars on U.S. properties in the past five years. The number is seen growing by 20 percent every year and may reach 218 billion dollars as of 2020, the report concludes.

———-

say hi to the new neighbours!

“A total of 27.3 billion U.S. dollars, 29,195 houses – What these numbersare saying is China has been the largest buyer of U.S. homes for the second year in a row.”

a large chunk of the market:

“In terms of dollar volume, the Chinese bought 26.7 percent of the total amount of residential property sold,notes Lawrence Yun, chief economist at U.S. National Association of Realtors as quoted by news media on Saturday”

401

~ by seeker401 on July 14, 2016.

2 Responses to “China remains top buyer of U.S. real estate”

  1. Reblogged this on Anthony Jerdine.

  2. We’ve seen this before with Japan. Japan was horribly burned with real estate investment in the U.S.
    The problem is, you buy up real estate in the U.S. because U.S. bonds currently pay squat & the trade imbalance means you have very little in the way of U.S. products to spend all your U.S. paper on (because China currently has almost all of the U.S.’s former industries).
    But you can’t take dirt home with you, and you can’t move your population to the U.S. due to immigration restrictions (which are about to get even tougher with the election of President Trump). And all the dough you are pumping into the U.S. real estate market is creating a bubble.
    When that bubble goes *pop* you will see your investment dive to the ground, and you’ll probably panic and try to sell off before you lose all your gains (believe me, all the other investors will be doing the same) and certainly before you lose your initial investment. Like I said, Japan got caught in this very scenario last time it happened.
    It has happened before, it will happen again, and all this turmoil is the result of imbalanced trade. Imbalanced trade benefits the very wealthy for a short period of time, until they have entirely wrecked the markets, but in the long term it benefits no one. One country ends up with no jobs & massive destitution (thus, no cutomers) and the other ends up with massive layoffs (remember the no customers?) and a mountain of paper money with nothing to spend it on.
    Even the very wealthy eventually lose out, when the entire scheme falls apart.

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