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Tags: Chinese | US | housing | cash

Chinese Shower US Housing Market With Cash

By    |   Monday, 08 July 2013 02:03 PM

With cash and an appetite for real estate, Chinese buyers are playing an increasingly prominent role in the U.S. housing market.

"The uptick in sales to Chinese buyers started several years ago but it has increased dramatically lately," Sally Forster Jones, an agent with Coldwell Banker International told CNN Money.

In 2012, purchases of U.S. homes by the Chinese had grown to make Chinese the second-largest group of foreign buyers, trailing only Canadians, according to USA Today.

Editor's Note:
Trump Says U.S. Losing Economic Power To China, No Longer A Rich Country

For the 12 months ended March 31, Chinese buyers accounted for 18 percent, or $12.28 billion, of the $68.2 billion spent by foreigners on U.S. homes. By comparison Chinese buyers spent $7.4 billion during the year ended March 2011, according to data from the National Association of Realtors, USA Today reported.

Conditions have been ideal for Chinese buyers who are looking to own a piece of the American dream. The financial crisis brought a softer housing market during a time of strong economic growth in China, which led to growing Chinese wealth.

According to USA Today, as of last spring mainland China had 960,000 millionaires, described as people with residences, private businesses and investable assets of more than $1.5 million. Half of them were considering moving overseas, and the United States was the favored destination.

Many of the Chinese are using home purchases and the EB-5 Immigrant Investor program to get in the fast lane toward earning a green card. The program requires foreigners to invest at least $500,000 in a business that will create or sustain at least 10 jobs.

Realtors say many Chinese clients are also in the market for homes for their children.

Steve Lawson, CEO of Windham China, a firm that links Chinese buyers with U.S. sellers, told USA Today that approximately 40 percent of Chinese buyers are purchasing property as investments.

Although many Chinese buyers are attracted to US real estate because they see bargains, they're not scooping up the low cost housing. On the contrary, at a median price of $425,000, they are buying more expensive homes than other foreigners are. CNNMoney reported that other foreigners spent a median of about $276,000 on U.S. homes.

Jones told CNNMoney she's sold about 10 multi-million dollar homes to Chinese nationals over the past year.

And when Chinese buyers set their sights on a home, they often pay in full. Nearly 70 percent of those pricey Chinese deals were made in all cash, CNNMoney reported.

Editor's Note: Trump Says U.S. Losing Economic Power To China, No Longer A Rich Country

© 2022 Newsmax Finance. All rights reserved.


Economy
With cash and an appetite for real estate, Chinese buyers are playing an increasingly prominent role in the U.S. housing market.
Chinese,US,housing,cash
435
2013-03-08
Monday, 08 July 2013 02:03 PM
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