Published on : Oct 07, 2015
Chinese buyers have been investing a lot of money into residential real estate in the United States, whether it is in the latest shiny condos overlooking the Manhattan skyline or the suburban houses in California. According to the National Association of Realtors, Chinese are now the leading foreign buyers of domestic properties in the United States and almost half of them are paying for it in cash, RealtyTrac, a real estate sales analytics and company states.
So far in 2015, 46 per cent of Chinese home buyers in the US paid for their house in cash, which was up by 229 per cent compared to 10 years ago. Comparing that figure to a cash share of 33 per cent for buyers overall, which rose by 65 per cent from 10 years ago.
Vice president at RealtyTrac Daren Blomquist said that across the scene, cash buyers have been playing a much more significant part in the housing sector today than they were a decade ago. This is more particularly true in the case of Mandarin speaking Chinese cash buyers and who are more likely to be foreign nationals. Daren Blomquist added that the US home price appreciation has been accelerated over the past few years thanks to foreign cash buyers owing to the fact that these buyers are not as limited by income as domestic conventionally financed home buyers.
The recent turbulence in the Chinese stock market and overall economy has forced even more buyers to the United States. In fact, a Virginia based real estate agency Long & Foster just began working with a China based real estate listing site called Juwai.
President of long & Foster’s corporate real estate services Pandra Richie said that the company has been witnessing demand from Chinese buyers with kids of all ages and they have been depending on their team for insights into the local areas as well as the educational offerings.