Foreign homebuyers jumping on depressed US housing markets

by reggielal on December 15, 2011

Foreigners looking to purchase homes in the U.S. are increasing their online search activity for bargains, as sliding home prices continue to attract investors from around the globe — especially Canada.

Florida properties remained the lead attraction for foreign investment in the third quarter, followed by Arizona, Nevada and California, according to traffic on the website for Point2, a Canadian-based real estate marketing company. Those housing markets have experienced the steepest declines in home prices from the sector’s peak in June 2006.

The trade group said for the 12-month period ending March 31, new immigrants and foreign homebuyers were  mostly attracted to Arizona, California, Florida and Texas. Over that time, 58% of all international sales occurred in those states. Sales initiated by international buyers rose to $82 billion for the period, up from $66 billion a year earlier.

NAR found the most important factor influencing home purchases by international buyers was a desirable location, followed by the expected investment profitability of the property.

Canadian traffic generated the highest number of visits to all top 10 states listed on Point2′s website, with a significant majority in six out of the 10 states. Potential buyers in the United Kingdom and Mexico followed in second and third place, similar to the NAR study.

Previous post:

Next post: