Latest news with #LawrenceYun
Miami Herald
3 days ago
- Business
- Miami Herald
Top 5 states where foreign buyers are scooping up U.S. real estate
The waters of the United States' residential real estate market are getting choppier. Homebuyers continue to stare down high mortgage rates while a growing number of sellers, already sitting on historic levels of equity, are beginning to delist their properties with inventory levels rising for 20 consecutive months and asking prices going unmet in markets around the country. Amid the uncertainty, however, new data from the National Association of Realtors (NAR) this week showed an uptick in the annual volume of residential property purchases by international buyers for the first time since 2018. In fact, foreign buyers accounted for $56 billion in sales from April 2024 to March 2025, a 33.2% increase from the prior 12-month period. After seven straight years of decline, the volume of existing-home purchases by international buyers rose from 54,300 to 78,100, or the equivalent of 1.9% of existing-home sales in the United States. Still, the mark comes in significantly lower than pre-pandemic highs, which most recently peaked in 2017 at 284,500 foreign purchases. Of those 78,100 purchases between last April and this March, 44% came from buyers who live abroad. As NAR chief economist Lawrence Yun put it, "Foreign buyers are drawn to investing in American real estate, in part, by our country's strong protection of private property rights." So, what are they buying and where are they from? Related: Homeowners can earn new cash-back rewards on mortgage payments soon According to the NAR's 2025 International Transactions in U.S. Residential Real Estate report, China (15%) and Canada (14%) were the top two countries of origin by percentage share, nearing doubling up the next closest, Mexico (8%). It was the highest share for both countries in a decade and their fourth year-over-year increase in the last five years. These buyers also paid all cash at a much higher rate (47% to 28%), and on higher-priced homes ($494,400 median price to $408,500), compared to all buyers. The same held true for intended use, as 47% of foreign buyers planned to utilize properties as vacation and/or rental homes compared to only 16% of total buyers. As has been the case for at least 15 years, according to Yun, the Sunshine State accounted for 21% of residential transactions by foreigners between April 2024 and March 2025. More News: Moody's drops 2-word warning on housing marketFormer Warren Buffett exec makes bold real estate betDave Ramsey has blunt advice on bankruptcy for Americans buying a home now Rounding out the top five rankings over that period were California (15%), Texas (10%), New York (7%) and Arizona (5%). California's 4% upswing was the largest this year, catapulting it back into second place after finishing third behind Texas a year ago. New York's 3% jolt also pushed it firmly into the top five, marking its highest percentage of foreign buyers since at least 2010. Weather and seasonality undoubtedly play a role in decision making, too. Per the report, approximately half of buyers from Canada (48%) and the United Kingdom (45%) bought in Florida, with a bigger affinity for townhomes and condos compared to their non-U.S. peers. Related: Warren Buffett's Berkshire Hathaway predicts major housing market changes The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Newsweek
6 days ago
- Business
- Newsweek
Map Shows Where Foreign Citizens Are Buying Up U.S. Homes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Despite longstanding affordability issues and growing uncertainty, foreign buyers have flocked back to the U.S. housing market over the last year, snapping up $56 billion worth of American homes between April 2024 and March 2025, new figures show. It is the first time that international buyer demand has risen in eight years, according to the National Association of Realtors (NAR), which shared the figures in its newly released 2025 International Transactions in U.S. Residential Real Estate report. The increase represents a dramatic shift from the declines observed in recent years, which suggested that foreign buyers were exiting the U.S. housing market. Between April 2023 and March 2024, foreign buyers invested $42 billion in residential purchases in the country—about 33 percent less than in the previous year. Over the past year, however, foreign buyers bought up 78,100 existing homes in the U.S. market, 44 percent up on a year earlier. While that is a significant increase, annual sales overall were the second-lowest since NAR began tracking such data in 2009. "International interest in buying U.S. real estate increased following the global economic recovery from several years of pandemic-related disruptions," NAR's chief economist Lawrence Yun said, commenting on the latest data. "However, elevated home prices and interest rates continue to dampen overall sales activity." Florida Leading The Way The Sunshine State continues to be the most attractive destination for a majority of foreign buyers, according to the report, accounting for more than one in five (21 percent) of international purchases. This is nothing new for Florida, which has been the most popular destination for foreign buyers in the U.S. for some 15 years thanks to its sunny weather, relaxed lifestyle and favorable tax policies. But a recent surge in housing inventory in the state, supported by a boom in construction, has made it even more appealing to buyers, Yun said, as local buyers pulled back due to ongoing affordability challenges. California is a close second, drawing 15 percent of all foreign buyers' purchases in the country. The Golden State overtook Texas as the second-most popular destination for foreign buyers, and between April 2024 and March 2025 it accounted for 10 percent of foreign buyers' purchases. New York followed with 7 percent of all foreign buyers' purchases and Arizona with 5 percent. Who Is Buying? The biggest share of foreign buyers purchasing homes in the U.S. over the last year came from China (15 percent; spending $13.7 billion), followed by Canada (14 percent; $6.2 billion), Mexico (8 percent; $4.4 billion), India (6 percent; $2.2 billion) and the United Kingdom (4 percent; $2.0 billion). Some 56 percent of foreign buyers, overall, are U.S. residents. The preferred destination for Chinese buyers, according to NAR's report, was California (which accounted for 36 percent of all purchases from Chinese buyers). For Canadian and British buyers, it was Florida (48 percent and 45 percent respectively). For buyers from both Mexico and India, Texas was the top choice (40 percent and 13 percent respectively). Nearly half of all foreign buyers (47 percent) paid all-cash—significantly more than the 28% of overall sales that were all-cash purchases. Foreign buyers also paid more per property, on average. The median purchase price among foreign buyers was $494,400—higher than the median price of $408,500 paid for existing homes sold in the U.S. from April 2024 to March 2025 and the median purchase price the prior year. That is likely because foreign buyers can afford to spend a little more, and prefer to buy generally more expensive properties in more central locations, analysts suggest.
New York Post
05-07-2025
- Business
- New York Post
More luxury homebuyers paying with cash this year, report says
More luxury homebuyers are paying with cash to acquire properties this year, a report from Coldwell Banker Real Estate revealed. The company said in its '2025 Mid-Year Report' that more than half of over 200 surveyed Coldwell Banker luxury property specialists reported an uptick in wealthy buyers purchasing homes with cash. Advertisement Roughly 34.1% said there has been a 'slight increase' while 16.6% said there has been a 'significant' rise in that method. Mortgage rates have played into the increase in buyers paying cash to acquire homes, according to National Association of Realtors Chief Economist and Senior Vice President of Research Lawrence Yun. 'High mortgage rates are not appealing for borrowing, and, therefore, that induces the wealthy to pay all cash for real estate (after selling off a few of their assets),' he told FOX Business. 4 Mortgage rates have reportedly played into the increase in buyers paying cash to acquire homes. Jaruwan photo – Advertisement Many have been turning to personal savings, stocks or funds they netted from selling another property as the 'primary' means to make their luxury home purchases, according to the Coldwell Banker Real Estate report. Meanwhile, for 45.4% of specialists, cash purchases have stayed at their current levels so far this year, per the report. On the flip side, just 3.9% of the Coldwell Banker luxury property specialists indicated their clients were moving away from buying homes through all-cash deals, Coldwell Banker Real Estate said. 4 A lot of luxury homebuyers are selling off some of their assets to help purchase the home, according to Yun. Golden_hind – Advertisement The trend in cash purchases comes as roughly 68% of Coldwell Banker agents said rich homebuyers they work with are 'maintaining – or increasing – current real estate exposure.' 'We've had a lot of volatility along with macroeconomic and geopolitical uncertainty this year. There's been a lot of transition and that's actually turned a lot affluent buyers toward real estate,' Jenna Stauffer, a Florida-based broker and Global Real Estate Advisor for Sotheby's Internal Realty, told FOX Business. 'Real estate proves itself as an anti-fragile asset,' she continued. 'Unlike many investments that struggle under uncertainty, real estate tends to strengthen over time and remains one of the best long-term hedges against inflation. That's why so many smart investors and high net worth buyers are parking their money in property this year. They're using it to preserve and grow their wealth.' 4 Just 3.9% of the Coldwell Banker property specialists said their clients were moving away from buying homes through cash-only deals. – Advertisement While wealthy buyers are sticking to their guns when it comes to what they want from a home, Coldwell Banker Real Estate also said they 'are being strategic about their purchases and prioritizing aspects of the home that create value over aesthetic perfection' such as affordability, taxes, and investment potential. That could drive a rise in 'smart buyers' focused on 'discernment and strategy instead of pure indulgence,' according to the report. The report also shed light on how ultra-high net worth buyers with over $30 million in assets and 'aspirational buyer' worth $1-5 million are engaging with the luxury real estate market. Some in the latter category, faced with economic uncertainty, are approaching the market with caution, per the report. 4 Coldwell Banker Real Estate said that the wealthy buyers 'are being strategic about their purchases and prioritizing aspects of the home that create value over aesthetic perfection.' Andy Dean – Michael Altneu, vice president of Coldwell Banker Global Luxury, said in the report that the luxury market 'has continued to show strength' in 2025 but various factors have 'tempered a more full-scale rebound in market activity.' The Institute for Luxury Home Marketing data showed a 1.7% increase in sales of luxury single-family homes in the period spanning January to the end of May from those seen in the same timeframe last year and a 1.8% uptick in sale prices, according to Coldwell Banker Real Estate. For attached luxury properties, there was a 8.1% decrease in sales but the median transaction price went up an average of 8.4%. Advertisement Both types of properties saw year-over-year increases in supply during the first five months of the year, with luxury single-family homes posting a 19.6% jump and attached notching a 14.8% rise, the report said. The U.S. saw active listings of single family homes, condos, townhomes and other types of housing reach over 1 million in May, a level that the country hadn't climbed above since the winter of 2019, according to a report released in early June.
Yahoo
05-07-2025
- Business
- Yahoo
More luxury homebuyers paying with cash this year, report says
More luxury homebuyers are paying with cash to acquire properties this year, a report from Coldwell Banker Real Estate revealed. The company said in its "2025 Mid-Year Report" that more than half of over 200 surveyed Coldwell Banker luxury property specialists reported an uptick in wealthy buyers purchasing homes with cash. Roughly 34.1% said there has been a "slight increase" while 16.6% said there has been a "significant" rise in that method. Mortgage rates have played into the increase in buyers paying cash to acquire homes, according to National Association of Realtors Chief Economist and Senior Vice President of Research Lawrence Yun. These States See The Most All-cash Home Purchases "High mortgage rates are not appealing for borrowing, and, therefore, that induces the wealthy to pay all cash for real estate (after selling off a few of their assets)," he told FOX Business. Read On The Fox Business App Many have been turning to personal savings, stocks or funds they netted from selling another property as the "primary" means to make their luxury home purchases, according to the Coldwell Banker Real Estate report. Meanwhile, for 45.4% of specialists, cash purchases have stayed at their current levels so far this year, per the report. On the flip side, just 3.9% of the Coldwell Banker luxury property specialists indicated their clients were moving away from buying homes through all-cash deals, Coldwell Banker Real Estate said. The trend in cash purchases comes as roughly 68% of Coldwell Banker agents said rich homebuyers they work with are "maintaining – or increasing – current real estate exposure." "We've had a lot of volatility along with macroeconomic and geopolitical uncertainty this year. There's been a lot of transition and that's actually turned a lot affluent buyers toward real estate," Jenna Stauffer, a Florida-based broker and Global Real Estate Advisor for Sotheby's Internal Realty, told FOX Business. "Real estate proves itself as an anti-fragile asset," she continued. "Unlike many investments that struggle under uncertainty, real estate tends to strengthen over time and remains one of the best long-term hedges against inflation. That's why so many smart investors and high net worth buyers are parking their money in property this year. They're using it to preserve and grow their wealth." While wealthy buyers are sticking to their guns when it comes to what they want from a home, Coldwell Banker Real Estate also said they "are being strategic about their purchases and prioritizing aspects of the home that create value over aesthetic perfection" such as affordability, taxes, and investment potential. That could drive a rise in "smart buyers" focused on "discernment and strategy instead of pure indulgence," according to the report. Top Five Buyer-friendly Housing Markets Offer Price Cuts And Increased Inventory The report also shed light on how ultra-high net worth buyers with over $30 million in assets and "aspirational buyer" worth $1-5 million are engaging with the luxury real estate market. Some in the latter category, faced with economic uncertainty, are approaching the market with caution, per the report. Michael Altneu, vice president of Coldwell Banker Global Luxury, said in the report that the luxury market "has continued to show strength" in 2025 but various factors have "tempered a more full-scale rebound in market activity." The Institute for Luxury Home Marketing data showed a 1.7% increase in sales of luxury single-family homes in the period spanning January to the end of May from those seen in the same timeframe last year and a 1.8% uptick in sale prices, according to Coldwell Banker Real Estate. For attached luxury properties, there was a 8.1% decrease in sales but the median transaction price went up an average of 8.4%. Small Real Estate Investors Reach Record Market Share, Now Dominate 59% Of Investor Purchases Both types of properties saw year-over-year increases in supply during the first five months of the year, with luxury single-family homes posting a 19.6% jump and attached notching a 14.8% rise, the report said. The U.S. saw active listings of single family homes, condos, townhomes and other types of housing reach over 1 million in May, a level that the country hadn't climbed above since the winter of 2019, according to a report released in early article source: More luxury homebuyers paying with cash this year, report says Sign in to access your portfolio
Daily Mail
03-07-2025
- Business
- Daily Mail
Warning about housing mega crash
Home sales across the US have plummeted to the lowest level in 16 years - and the threat of a complete collapse is imminent. May 2025 was recorded as the slowest May for existing sales since 2009, the National Association of Realtors said in a report. They fell 0.7 percent compared to the same month last year and are likely headed for a freefall across the country. Potential buyers are scared off by a rocky economy, rising HOA fees and high mortgage and insurance rates, forcing sellers to slash prices . Median home prices were up 52 percent compared to May 2019, but over the same period wages gained only 30 percent, according to the NAR. Home sales are only at 75 percent of what they were pre-COVID, said NAR chief economist Lawrence Yun. Just before COVID hit in 2020, the average monthly payment on a home with a low mortgage rate was roughly $1,000. Today it's doubled and is roughly $2,000. 'That doubling in the monthly payment for a new set of buyers is hindering the market condition,' Yun said. The number of homes for sale has also become a problem. Too much inventory is hurting sellers across the US , especially in the West and South. Redfin has estimated there are 34 percent more sellers than buyers in the country right now. For sellers, the condo market is especially bad. In May, condo sales were down 10 percent compared to the same time last year. There are now 83 percent more condo sellers than buyers in the market, Redfin reports. Many hoped that the housing market would improve as people would list their homes and buyers would bite. Instead, buyers remain nervous about the economy and the future of their jobs. Yun said it's going to take mortgage rates coming down to unstick the housing market. 'If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs,' he said. Home sales have even hit a recession level low this year. In March, home sales lowered more than expected — dropping to their slowest pace since 2009 as panicked buyers bailed. One report warned that five metro areas — three in Florida and two in Arizona — are at huge risk of a housing market crash in 2025. The tide is turning for buyers 'They have a ridiculously low 3 to 4 percent interest rate on their mortgage and are in great shape on paper.' Those people tend to hang on to their homes for a long time. He said plenty of people still want to buy, and they are growing less nervous because even though mortgage rates are still high, home prices are dropping. 'We are seeing at street level, sales increase for us in South Florida as we are going into the summer offseason months,' Lichtenstein told the Daily Mail. He said homeowners who want to sell quickly need to lower prices, and that buyers have an advantage now. 'The crash of the century was in 2006 to 2012 and the epicenter was in South Florida,' he said. 'This is nothing and I think we are already at the bottom of the amount of activity.'
