Foreign investors make up small percentage of US property market

Foreign investors made up four per cent of the US property market in the year to March 2010, new figures have revealed.

According to the National Association of Realtors (NAR), international buyers spent USD 41 billion on real estate during the time period.

The organisation explains that just over half of all the purchases made by foreign investors were in four states, with Arizona, California, Texas and Florida property proving to be the most popular.

In addition, the NAR stated that 55 per cent of these buyers paid for their real estate using cash, compared to 92 per cent of US buyers who opted for a mortgage.

Meanwhile, the US real estate recovery could be hampered by an oversupply of housing and an increasing number of foreclosed properties entering the market, Radar Logic has said.

The body claims that hopes of price escalation are likely to be dashed by the sheer weight of distressed and non-distressed property on the market.