Published Date : Jul 08, 2014
Seeking refuge from political and economical ambiguity and rising levels of pollution, Chinese homebuyers are currently driving the U.S. real estate market which is witnessing a jump in foreign sales. Buyers from Greater China spent nearly USD 22 billion on houses in the U.S. in the present year, which is 72% more than the previous year, and more than any other nationality. Compared with a U.S. median price of USD 199,575 for home sales, Chinese buyers were paying a median price of USD 523,148, and the Canadians paid USD 212,500 even though they purchased more homes than the Chinese.
California is seen as the most popular housing investment by Chinese buyers, with 32% homes in the state sold to foreign buyers bought by the Chinese.
A slow economy and surplus supply of homes has led to a fall in new-home prices for the second consecutive month this year, while home prices in the U.S. rose 26% since March last year. The surge of Chinese buyers has also led to a rise in constructions in South California cities like Arcadia. Arcadia has a large Chinese immigration community, top-ranked schools and various Chinese markets and restaurants. Chinese homebuyers drove the median home price in Arcadia by 18.5% since last year.