For the first time since 2011, sales of U.S. property to Chinese buyers have fallen. For the 12-month period ending in March, total sales to Chinese buyers were $27.3 billion, down from $28.6 billion a year earlier, according to bloomberg.com. Additionally, the number of properties that Chinese buyers have purchased has fallen from 34,327 units down to 29,195.
A big reason for these drops is due to China’s increased measures to control cross-border capital flows after the yuan dropped in August, sending Chinese currency to a five-year low against the U.S. dollar.
Because most Chinese buyers do not have a credit history or proof of income in the U.S., 71 percent of Chinese buyers are paying for their real estate purchases with cash. Only 20 percent got mortgages from banks operating in the U.S. This is in stark comparison to Indian buyers, where only 7 percent paid cash and 90 percent secured mortgages from U.S. banks.
Even as Chinese buyers are purchasing less property in the U.S., they still are ahead of all other nations in terms of international buyers.
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