U.S. housing market in recovery...thanks to China? by Bernice Napach
It's not just institutional investors that have been propping up the U.S. housing market. Foreign buyers are also buying in. The National Association of Realtors is reporting that international buyers accounted for $92.2 billion of U.S. home sales during the 12 months ending in March 2014-- 35% higher than the same period a year earlier.
Just over half of these buyers came from a handful of countries: Canada, China, Mexico, India and the U.K., according to the NAR. China led in dollar volume of purchases: $22 billion, while Canada had the largest share: 19%. About 60% of foreign purchases were all cash, according to the NAR.
"The Chinese real estate market is overheated. It seems ready to bust...so they want to get their money someplace that seems more stable," says Newman. Many Chinese buyers are investors but some are coming to the U.S. to live so their kids get a U.S. education and learn English, says Newman.
