They’re flocking to America to buy homes

Nearly one in five REALTORS® has sold a home to an international client in the past year, according to new research. An international client is a foreign citizen living abroad who has legally entered the United States to purchase a home.

In this country we have always known that housing is a good long-term investment, and many foreign buyers seem to share this view.

This latest study shows that more and more consumers from around the world are interested in purchasing a home in the United States for themselves as an investment, or simply to enjoy a piece of the American dream.

In 2006, most international home buyers purchased single-family homes or townhouses, and like most domestic home buyers, they financed their purchase. However, they showed stronger preferences for condos and apartments. When compared to U.S. homebuyers, 22 percent of international buyers purchased condos and apartments.

•Twenty-eight percent of foreign buyers bought their homes with cash, compared to 8 percent of U.S buyers.

•The median sales price of homes purchased by international buyers was $299,500, which is significantly higher than the U.S. median of $221,900 during the same period.

•Foreign buyers purchase homes across the United States, however sales in 2006 were concentrated in three states — Florida (26 percent of sales), California (16 percent) and Texas (10 percent).

•Just as many U.S. residents are looking overseas for retirement and second homes. People in other countries are considering a home in this country. As international boundaries of homeownership dissolve, REALTORS® must be ready to serve an increasingly diverse and multicultural marketplace.