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Perhaps foreign buyers can at least bring to the U.S. market what it's been lacking and may provide a psychological support of confidence. It is no surprise that with the weak dollar, foreigners are seeking more than just a holiday on American soil. There seems to be a trend growing especially in resort states like Florida. In fact the National Association of Realtors has found that 65 percent of Florida Realtors have a client base of at least one international customer. Furthermore, it has been published by the trade organization as part of its profile that at least 7 percent of home sales transcations were completed by foreign clients. Should this be alarming or just a sign of the times? Is this a trend we are just now realizing or a practice ingrained within the real estate industry?

While foreign property ownership of American land is not something new, in fact a practice with origins in colonial times, and considering the status of the weak dollar against other international currencies, one cannot help but envy the foreign buying power. It seems logical as a wise investment to purchase real estate here. Another factor is real estate prices are dirt cheap comparitively speaking with some highly populated areas of western Europe and Asia. In other words, foreigners get more bang for their Euro or Yen. As Americans, we can appreciate a good bargain, after all, we invented the concept.

Another astonishing trait of this trend is the common practice of foreign buyers paying cash for their homes. One can analyze why this happening with many different possibilities, but also one can easily attribute it to the current exchange rate. The percentage of foreign cash buyers greatly exceeds that of the American cash buyer for family homes. The foreign cash buyer comprised 28 percent of buyers whereas American buyers were only 8 percent of the population. Also it seems that international buyers can more realistically afford to do this type of investment of a second home abroad because they are often demographically from upper class wealthy households with higher disposable incomes, cash reserves and prime credit ratings. This makes for greater buying power. Still what separates the foreign cash buyer from the pack of this type of investor pool is the fact they are motivated by paying cash mainly due to tax reasons. Much of the tax break would depend upon the buyer's tax status and their country's tax regulations, but this factor greatly influences their decision against taking out a mortgage.

Just as with any home buyer, the foreign buyer has reasons for purchasing a home. Their desires are as varied as ours when it comes to what they want in a home: size, style and price. They may not chose to live in the property fulltime and this sets the tone for their reasons for buying in the United States as different from local buyers.

Because of their desire to be in resort locations, it is not at all shocking that according to the NAR study, Florida, California and Texas are the top three states for the foreign buyer to purchase. However, other locations such as Las Vegas and areas of upstate New York are also quickly catching on as desirable.
Another factor that sets the international buyer apart from the American buyer is their spending power. They can simply afford more house. Further research into understanding the foreign client and their demographic traits found that they came from different areas of the world. The top five home countries for the international buyer were: Mexico, the United Kingdom, Canada, India and China. While it appears the American economy is in distress due the housing market downturn, purchase of United States real estate remains a popular option for many foreigners.

The NAR study found that out of the five top countries of origins for international buyers, those from the United Kingdom and China paid the most for their United States property. For some this may demostrate how demographic features correspond with buying trends. It was found that Canadian buyers were more likely to purchase homes at the million dollar mark, more so than anything other countryman.

What is most interesting is how much foreigners respond to the desire for the American dream leading one to believe is not just an American concept but a universal one.