Thursday, October 29, 2015

Chinese Buyers Sink More Cash Into U.S.

Chinese buyers now make up the largest segment of foreign purchasers in the U.S. real estate market, and they predominantly pay in cash.
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So far this year, 46 percent of Chinese buyers paid cash, up 229 percent from a decade ago, according to RealtyTrac. That is significantly higher than the 33 percent share of cash buyers overall in the market. That figure is also up 65 percent from a decade ago.
"Cash buyers across the board are playing a much bigger role in the housing market now than they were 10 years ago, and that is particularly true for Chinese Mandarin-speaking cash buyers, who are more likely to be foreign nationals," says RealtyTrac Vice President Daren Blomquist. "Foreign cash buyers have helped to accelerate U.S. home-price appreciation over the past few years, given that these buyers are often not as constrained by income as local, traditionally financed buyers."
Even recent instability in China's economy and stock market haven't deterred Chinese buyers from investing in U.S. real estate. In fact, it has heightened their interest. With the influx of money from China so high, Long & Foster even recently partnered with Juwai, a China-based real estate listing site.
"We're seeing demand from Chinese buyers with children of all ages — some as young as 1 year old — and they're relying on our team for insight into the local areas and their educational offerings, from elementary to university level," says Pandra Richie, president of Long & Foster's corporate real estate services. "Access to quality education is one of the top priorities for Chinese buyers, and from Philadelphia to Richmond, our market areas offer some of the best school districts and universities."
Source: “Chinese Money Flows Into U.S. Housing,” CNBC (Oct. 6, 2015)

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