Chinese buyers snap up U.S. homes

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Source: National Association of Realtors.

Chinese investors spent approximately US$12.3 billion in U.S. homes during the 12 months ended March 31, accounting for 12 percent of the total overseas purchases, according to the latest report of the U.S. National Association of Realtors (NAR).

Total international sales of U.S. homes stood at US$68.2 billion during this period, said the NAR.

Buyers from Canada (23 percent), China (12 percent), Mexico (8 percent), India (5 percent) and the United Kingdom (5 percent) have accounted for the bulk of purchases, which was about 53 percent.

Chinese buyers tend to purchase property in the upper price ranges with a median price of US$425,000, compared to Canadian buyers' median price of US$183,000 and Mexico buyers' US$156,250, the NAR data showed.

Most Chinese home buyers in the U.S. chose properties in California and nearly 70 percent of deals were made in cash.

Chinese investors are purchasing many of the trophy properties on the Westside of Los Angeles, said Sally Forster Jones, an agent with Coldwell Banker International in the city. Jones has sealed about 10 multi-million dollar home deals with Chinese buyers over the past 12 months.

Many of these Chinese home deals were made through the U.S. government's EB-5 Immigrant Investor program, which is considered a fast-track to getting a green card. To qualify, foreigners must invest at least $500,000 in a business that provides or preserves 10 jobs. This could be a home that is part of a bigger business project, such as a condo complex. Nearly 80% of all EB-5 visas went to Chinese nationals in 2012, according to the government.

Five states made up 61 percent of reported purchases; Florida (23 percent), California (17 percent), Arizona (9 percent), Texas (9 percent) and New York (3 percent).