Us Housing Market Comprises Of Mostly Chinese Buyers
The Chinese are flooded with cash now and thus the interested homebuyers are a big customer in the US housing market for buying homes and paying top rates.
According to Jonathan Miller, who is an appraiser based in New York, “The Chinese came out really huge in the past year.”
In fact, the buyers from China accounted almost more than 18% of $68.2 billion foreigners that spent money on homes during the last one year. This was claimed by the National Association of Realtors. It has also been found that the Chinese are buying more homes even at the prices of $425, 000 compared to many other foreign buyers. In addition to that, it has also been stated that more than 70% of the deals were made in cash by the Chinese.
In California, the influx is more felt because half of the homes have been sold to the Chinese buyers from here. An agent, Sally Forster Jones associated with Coldwell Banker International also claimed that the Chinese are getting more properties on the western side of the city. she also states that more than 10 multi dollar homes have been sold by her to the Chinese in the last 1 year.
According to her, “The uptick in sales to Chinese buyers started several years ago but it has increased dramatically lately.” Most of the Chinese clients with which she deals are wealthy industrialists and many of them have spent even less than half the year in US. “Some have children going to school in Los Angeles and use the homes as residences for them and [as a place] to stay at when they visit their kids,” she said.
Lately, it has been found that the gross domestic product of China has grown to a great extent in single digit. This is not the end. It has also sometimes grown double digit in the last 10 years. This in turn, has helped the country to produce more cash, especially for the top business class people. They are investing in the real estate market of US, because they consider it to be safe and stable.
The purchases of the homes are mainly carried out in order to raise the family. Special attention is also given to the local schools.
There are some Chinese who also buy homes for their kids. A family from Shanghai bought a condo for their daughter last year. There are, in fact, several similar instances of this type.
There are Chinese that buy homes through the government of the US immigrant investor program. This program is considered to be fast track by means of which green card can be achieved. In order to qualify for the program, it is important for the foreigners to invest a minimum of $500, 000 in any business providing 10 jobs. It has also been found that 80% of these visas have gone to the Chinese citizens in 2012, as per the government records.
Apart from California, there are other sunbelt states that are also attracting the attention of the foreign home buyers in the recent years. Las Vegas is attracting buyers from Canada. In fact, it has been estimated that there are almost 4 states that accounted for foreign sales. Florida occupied 23% of the sale while California 17%. On the other hand, Texas and Arizona occupied 9% of the foreign sales. New York is an immigration gateway and an international business center. Virginia is close to Washington in terms of powers and both account for 3% of sales.