2015 was another very strong year for foreign investment in US real estate, especially here in the Bay Area and particularly from Asian buyers.
The dollar volume of all foreign investment in the US reached $104 billion for the 12 months ended March 2015, up 13 percent from the same period a year ago, according to the National Association of REALTORS®. More than half of that investment went to California and three other states – Florida, Arizona, and Texas.
No one knows for sure exactly how much foreign investment there is in the Bay Area housing market, but anecdotal evidence from agents and managers in the field tell me it is substantial. And it’s probably not surprising, considering the fact that the Bay Area has long been one of the most sought after housing markets for Chinese investors and other offshore buyers.
International investors are attracted by the strength of our local economy, particularly the tech sector in Silicon Valley. They also favor the stability of the US political and financial systems, our strong schools and world-class universities like Stanford and UC at Berkeley, solid appreciating on homes in the Bay Area, and the relatively affordable prices –yes, “affordable”—compared with many other major cities around the world.
If you have any doubt about just how fast Chinese and other Asian investment is growing in the US, consider a recent NAR study that found Chinese buyers were the number one international investors in US real estate over the past year with $28.6 billion in sales volume, nearly three times the number two country, Canada. As recently as six years ago, Canadian investment in the US market was more than double China’s, which also ranked behind India and the UK and was at the same level as Mexico.
Posted on December 25, 2015 at 10:09 pm by Debby Bright