International sales of US property have surged this year, according to the National Association of Realtors.
Total overseas residential property sales climbed by 24 per cent in the 12 months to March, the NAR revealed, up from $66.4 billion in 2011 to $82.5 billion.
The figures follow ongoing uncertainty in the eurozone, stirred by Greece's weekend elections, cementing America's status as an attractive market for investors thanks to the weak dollar and already record low house prices.
Demand from the eager buyers centred on four key states: Florida, California, Texas and Arizona.
Texas, recently found to be the fastest-growing state in the country, accounted for 7 per cent of sales, neck-and-neck with Arizona. California, on the other hand, topped both by taking 11 per cent of transactions.
The West Coast state attracts many affluent, non-EU buyers. Indeed, Chinese buyers are now the second largest foreign buyers of US property behind Canadians. These wealthy investors, who in the past have focussed on Paris, Shanghai or Moscow, have now come to America, pumping cash into California's property market to take advantage of the low values and high rental yields.
As a result, the state is turning into the new hotspot for the super rich. In fact, Los Angeles already houses the highest number of foreign-born billionaires outside of New York. Russian Facebook investor Yuri Milner, for example, purchased the most expensive single family house ever sold in America last year.
"Investors are now snapping up foreclosures in greater numbers because comparatively low property prices mean they are able to achieve strong returns" David Parnes, director of Los-Angeles realtor Bond Street Partners, told Reuters. "Prices in L.A. are showing to 60 to 70 percent discounts against their equivalent in Manhattan."
Sales there are soaring too, jumping 21.5 per cent in May compared to the year before: the highest annual sales increase since May 2009, according to the Californian Assocation of Realtors.
But even with its wealthy investors, California cannot compete with Florida. The Sunshine State is the fastest growing destination for foreign buyers, accounting for 26 per cent of all international purchases in the US.
Indeed, Florida attracts buyers from all over the world. Together, Canadian, Chinese, Mexican, Indian and British investors account for 55 per cent of all transactions. So what draws them there?
For Europeans, the sunny climate and proximity hold appeal, as well as the familiarity of Orlando's tourist attractions. But for Latin Americans, Florida is viewed as a kind of home from home - a place to stash their cash. This investment habit has, over the years, formed an established base of South American homeowners in the area - a community that only reinforces its popularity among buyers.
"Foreign buyers recognize that owning a home in the U.S. has many benefits, both financial and social," commented NAR President Moe Veissi. "Many recent immigrants view homeownership as an important accomplishment. They believe that being a homeowner is one of many ways they become established in the U.S. and attain stability, security, and a sense of community."
Whether investors are buying to own a holiday home or generate a regular investment or simply to secure a visa, agents are not much bothered. For them, foreign buyers mean business. And right now, as investors continue to pile in from around the globe, business is booming.
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