With International Home Sales in the US soaring at nearly $103 Billion for 2016 it is evident of a continuing strong housing market.
According to the National Association of REALTORS® 2016 Profile of International Home Buying Activity, international buyers are coming from all over the globe with five countries the accounting for 45% of the reported transactions. Those countries are China, Canada, India, UK and Mexico.
International buyers are not just purchasing luxury properties in the US. In fact, 45% of international property sales were under $250,000 with 50% of the purchases being all cash transactions. On average it's international buyers are spending approximately $210,000 more than domestic buyers.
Chinese buyers lead in the international sales volume as they spent $27 .3 billion last year making up nearly 27% of all international sales. Chinese buyers are also purchased with cash 71% of the time.
According to existing Chinese Government rules, Chinese Nationals are only able to legally convert ¥200,000, approximately $50,000 USD, a year into foreign currency. As of July 2017, Chinese banks must report domestic and overseas cash transactions of more than ¥50,000 or approximately $7,200 USD.
Even though the Chinese government already prohibits Chinese Nationals from purchasing property overseas it has not been strictly enforced until now. If the Chinese government finds that the money was used to purchase homes outside China they will be barred from exchanging money for three years.
This may have a strong impact on our NYC housing market. Time will tell...
Nancy & David Legaz
Author:David Legaz Phone: 718-216-9990 Dated: May 11th 2017 Views: 1,757 About David: ...
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