Chinese consumers hold the title of top foreign buyers in both units and dollar volume of residential housing for six year straight, according to the National Association of Realtors. Now, CNBC reports they are expanding to “new, lower price tiers.” While the Chinese many have soured on American products such as iPhones, U.S. residential real estate seems to have only sweetened.
Chinese consumers seem to be less interested in trade wars and more focused on bidding wars, according to San Francisco-based real estate agent Michi Olson. “The Chinese are basically politically agnostic,” Olson said. “What I mean by that is even though there is a great tension between [the] U.S. government and Chinese, the Chinese citizen seems to be able to separate the political turmoil with the sound real estate investment.”
He continued stating one of the biggest differences this year is the price point. More Chinese middle-class are purchasing lower-priced homes and typically financing it with mortgages. The wealthy buyers were previously purchasing the high-end properties in cash.
“The Chinese people still see the United States as a safe harbor where they can take their assets and park their money not only for their money but also for the future of their children,” Olson said.
The average price of a home sold to a Chinese buyer decreased from just below $530,000 in 2017 to $439,000 in 2018, as the National Association of Realtors reported. California still remains a top destination, though more buyers are beginning to head towards Texas, Georgia and Florida.