According to the 2014 Profile of International Home Buying published by the National Association of REALTORS® in July, international home buyers purchased an estimated $92.2 billion in U.S. residential real estate last year. This is 35% more than the year prior and is the highest figure reported since the report was first published in 2007.

So what accounts for the growth of international business?

Many global markets have experienced economic recovery over the last year. We have seen a healthy pace of growth in China as well as the appreciation of some currencies against the U.S. dollar such as the Chinese yuan and British pound. According to NAR’s recent survey, 75% of Realtors® said the exchange rate was an important factor in their clients’ decision to buy since the growth has enhanced the affordability of purchasing U.S. property. In recent years, China has become the second largest economy and is increasingly playing an important role in the global economy. Chinese buyers accounted for nearly 20% of international real estate sales in the U.S. last year, and, on average, spent more than other international buyers.

Despite rising home prices here in the United States, prices are still lower now than they were in comparison to the peak level prior to the Great Recession of 2007- 2009. The United States continues to be an affordable market for many international home buyers especially with the idea that U.S. real estate is a secure investment being another important factor often cited by foreign buyers.

International buyers are coming to the United States from all over the globe with the largest number of buyers from China, Canada, UK, India, and Mexico. On average, international buyers spent $149,000 more than domestic buyers did. In recent years international buyers, especially the Chinese, have had greater access to credit. With tight credit standards in the U.S. buyers paying with cash or making high down payments when presenting a contract for sale have made out better than those relying on loans.

To learn more about why international buyers are coming to America, check out our 30 minute “Global Perspectives” webinar, co-hosted with NAR: