U.S. real estate, following the Chinese habit of 'buying when prices rise, not when they fall,' has seen significant interest from Chinese immigrants. Since last December, U.S. home prices in 20 major metropolitan areas have risen by 6.8% year-on-year; in January of this year, new home sales in the U.S. rose by 16% month-on-month. These figures indicate that the U.S. housing market is recovering. A large number of Chinese investors have begun entering the market to invest in U.S. real estate. From March of last year to March of this year, Chinese buyers spent a total of $22 billion on U.S. properties, with more than half of these purchases concentrated in California, Washington, and New York. Chinese buyers have become the largest group of international buyers in the U.S. real estate market. According to statistics, transaction volumes in some state real estate markets have reached billions of dollars. In 2012, Chinese buyers spent $9 billion on U.S. properties, second only to Canadians. The Chinese buying frenzy is accompanied by the trends of immigration and studying abroad.
In the Los Angeles area of the U.S. West Coast, homes in good school districts often cost over a million dollars, yet Chinese buyers continue to snap them up. Data from the California Association of Realtors shows that 5.8% of properties sold in California in 2012 were purchased by international buyers, with Chinese buyers accounting for nearly 40% of that segment. Additionally, data estimates that 10% of homebuyers in California are Chinese individuals purchasing a second home. Because Chinese people often hold the mentality of 'buying when prices rise, not when they fall,' experts predict that as the U.S. real estate market recovers, it may trigger a new wave of Chinese buying interest in the U.S.
Facing the trend of Chinese buying homes in the U.S., experts advise maintaining a calm perspective. After all, Chinese buyers in the U.S. cannot obtain loans and must pay in cash. In the same U.S. city, property prices can vary by 5 to 10 times between different areas. Therefore, it is essential to do thorough research before purchasing. Do not act hastily just because you heard that property prices in a certain major city are cheap. Before buying, consult with friends and relatives in the U.S., search for relevant information online, and find a reliable agent—ideally, conduct an on-site inspection.
