The real estate average purchase price by non-Americans is nearly 60% more expensive than that purchased by Americans ($454,000 vs $290,600), according to the National Association of Realtors
(NAR). However, the average purchase price in 2018 of $454,000 is 15% lower than the prior year ($535,000). A downward trend can also be found when we isolate spend by Chinese investors specifically. Our Director Of Economic Research, Ali Wolf
, dug into the data and highlights a shifting trend.
Are Chinese Shoppers
The Impact Is Concentrated
The pullback was not universally felt across the US. In fact, the same NAR report indicated that over half of total residential purchases by foreign buyers occurred in five states*, with a third of all sales in just two: Florida and California. Singling out Chinese demand, there are a couple of noteworthy trends.
Interest is still there for US housing.
is an online brokerage firm connecting Chinese buyers to real estate across the globe. The US remains the number one most searched country, but fourth quarter trends show strong interest in Asia and Europe. Inquiries to buy property in Thailand, Greece, Germany, and Spain all increased by 100%+ in the fourth quarter compared to the same period last year, while interest for the US grew only 8% YOY, with October being the weakest month of the year.
Within the US, the top cities searched by Chinese shoppers on Juwai were: Los Angeles, New York, Seattle, Houston, and Orlando.