International real estate purchase in America continue to be a huge part of business for many Realtors, according to the 2008 National Association of Realtors Profile of International Home Buying Activity. 

The new research shows that international buying activity in the U.S. is not concentrated in certain areas, but rather widespread throughout the country. NAR estimates that between 150,000 and 190,000 homes were sold to foreign nationals between May 2007 until May of this year. Recent foreigners purchased properties in every state and the District of Columbia. The most popular states for foreign buyers to purchase homes in are Florida, California and Texas while Arizona, New York, Washington, and Nevada were also popular.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, CA, says, "As the most trusted resource for real estate information, Realtors have long understood what this latest research confirms - the U.S. housing industry truly has no boundaries."

A typical international buyer purchased a single-family vacation home for $297,400. Four out of ten buyers paid for their U.S. property with cash, compared with 7 percent of all domestic buyers who pay cash for their properties. The average international property owner stayed at their U.S. property for 2.6 months during the year, according to NAR data. 

 Foreign exchange rates have helped American homes much more affordable for those buying internationally. The euro has strengthened 24 percent versus the U.S. dollar since 2006. Home prices are also now more affordable in places like Arizona and Florida, which contributes to those states' popularity with international homebuyers.

According to Gaylord, "Many international buyers recognize that real estate is an excellent investment and are drawn today by abundant inventory, low interest rates, and a softer dollar. These conditions allow them to own their own piece of the American dream."  

Foreign homebuyers are very distinct from domestic buyers. International buyers tend to purchase more expensive properties that cost an average of 36 percent more than the typical domestic buyer's purchase. More than 14 percent of properties sold to foreigners sold in excess of $750,000. International homebuyers also show a greater preference for townhouses and condos compared to domestic homebuyers.

North Americans, Europeans, and Asians accounted for more than 85 percent of recent home purchase transactions. The top six countries of origin for international homebuyers, in rank order, were Canada, the United Kingdom, Mexico, China, India, and Germany.  This year, Canada replaced Mexico as the country with the biggest share of foreign buyers in the United States. The percentage of Canadian buyers doubled from 2007, from 11 percent to 23.5 percent. 

"This survey confirms a pattern that we have observed for some years in Florida and other markets that are attracting buyers from overseas," says Tony Macaluso, 2008 chair of NAR's international business group. "This latest research enhances our understanding of this audience and provides insight for the increasing number of Realtors with international clients." 

Of the Realtors surveyed by NAR, 26 percent served international clients in the past year and nearly 50 percent of those clients purchased a home. The primary reasons some clients did not eventually purchase a home were pricing concerns, immigration laws, and property taxes. Macaluso says, "If visa regulations that favor longer stays for overseas buyers such as retirees from abroad were in place, these sales levels would be even higher."

Realtors who've sold homes to foreign clients reported that these transactions accounted for roughly 16 percent of their entire business. 8 percent of Realtors who work with international buyers accounted more than half of their business to foreign sales.