An increase in international buyers, mainly from China, have picked up houses in the US in the past year, while American households continue to get the increasing challenges on the market.
The number of existing houses purchased by foreign buyers from April 2024 to March 2025 has increased for the first time since 2017, according to a recent report from the National Association of Realtors (NAR). The report emphasizes that Chinese buyers represented the majority of foreign investors in terms of total expenditure and transaction volume, with $ 13.7 billion in existing houses being purchased – an increase of 83% compared to the previous year.
That is an important increase in $ 7.5 billion in purchases in the previous year, according to Nar. These buyers also have the highest average purchase price for $ 1.2 million, with most purchases being concentrated in states with substantial price tags. According to the report, around 36% of Chinese buyers bought a real estate in California, while 9% have purchased real estate in New York.
The number of existing houses purchased by foreign buyers from April 2024 to March 2025 increased for the first time since 2017. (Paul Morris / Bloomberg via Getty Images / Getty images)
The persistent US Housing affordability crisis, which has made it particularly difficult for American buyers and sellers to enter the market, creates more opportunities for overseas buyers according to real estate experts.
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About 78,100 properties were purchased by foreign buyers, which represents an increase of 44% compared to the previous year, although it is still at the second lowest level since NAR started estimating the purchases of foreign buyers.
Although foreign buyers do not necessarily perform American buyers, they benefit from the weak demand in the market, because the mortgage interest rate remains one of the largest entry thresholds for American buyers and sellers, according to senior economist Joel Berner of Realtor.com.
PerselsExperts say that the affordability crisis for home in the US creates more opportunities for overseas buyers. (Steve Pfost / NewSday RM via Getty images) / Getty images)
“If you look at that NAr report, more than half of these international buyers make cash purchases because they can. They are rich international people who are currently looking at the market and seeing that there is not much demand for houses in the US,” Berner said, adding that American buyers are content to be on the sidelines because of the affordability problems.
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The average rate on a fixed mortgage of 30 years is 6.67%, according to Mortothekkoper Freddie Mac. That is more than double the approximately 3% rate that is seen in December 2021, with the emphasis on the growing pressure that Americans are confronted with loan costs.
Although foreign buyers do not necessarily close American buyers, they benefit from the weak demand in the market. (Saul Loeb / AFP via Getty images) / Getty images)
Moreover, the house prices affect record highs. National prices have risen almost 4% year after year and since 2019 no less than 60%, according to the Joint Center for Housing Studies’s State of the Nations Housing Report. In turn it drove the costs of a typical existing single -family home to a record of $ 412,000 in 2024.
However, if it pays cash, experts say it is a good time to buy, regardless of whether it is an international or American buyer, since they skirt that high loan interest.
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Berner said that the interest of international buyers is a welcome relief for certain sellers in the midst of slow sales activities.
“It helps to eat part of the inventory that would otherwise not be sold,” Berner said, adding that Realtor.com has seen an increase in the cancellation because “people just give up a little giving up their house.”
Switches surpassed the total stock profits in May, jumping from 35% years to date and 47% years after year, according to the Realaltor.com report in June. For comparison: the active growth of the list was 28.4% and 31.5% respectively.
