Photo courtesy Business Wire.
Photo courtesy Business Wire.

With the Chinese playing a prominent role, the purchase of California homes by foreign nationals is proceeding at the same pace as last year even though the California housing market is slowing and the U.S. dollar appreciated last year, the California Association of Realtors reported Tuesday.

CAR’s “2014 International Home Buyers Survey” reflects that one of six participating Realtors — 14 percent — closed a transaction with an international client, unchanged from the previous year, according to a CAR statement.

More than one in three international buyers — 36 percent — were from China and their purchases remained very cash-strong, it said. Two-thirds of international buyers — 66 percent — paid all cash, down slightly from 69 percent in 2013. Those who purchased homes below $500,000 had the greatest tendency to pay all cash — 66 percent — compared to those who purchased homes costing $500,000 to $1 million, or 57 percent.

Being more affluent than the average California home buyer, overseas buyers purchased more expensive homes at a median price of $490,000, compared to 2014’s single-family median home price of $447,000, according to CAR.

Those who purchased homes below $500,000 made the highest percentage of investment purchases — 40 percent — compared to those who purchased homes between $500,000 and $1 million (17 percent for investment) or those who purchased homes of more than $1 million (34 percent for investment reasons).

CAR 2014 International Home Buyers Survey found that 36 percent of international buyers in California were from China, 11 percent from Canada and 9.1 percent from Mexico. The United Kingdom and India round out the top five countries of origin, with both under 5 percent, CAR said.

— City News Service

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