International Property Sales Surge by over 40%

The Greater San Diego Association of REALTORS® (SDAR) and SDAR’s International Real Estate Committee are excited about a significant rebound in activity by foreign real estate buyers and how this trend has huge implications for San Diego real estate professionals.

In a memo to SDAR International Real Estate Committee members, David Martin, SDAR’s Director of Advocacy, Commercial and International Strategy, cited a National Association of REALTORS® (NAR) report that said the number of existing U.S. homes purchased by foreign buyers has increased for the first time since 2017, signaling a turning point for international interest in the U.S. real estate market.

According to the NAR report, the number of properties purchased by international buyers (78,100) has surged 44% year-over-year. Also, total dollar volume from international transactions has risen to $56 billion, marking a 33% increase year-over-year. The report reflected NAR members’ transactions with international clients who purchased and sold U.S. residential property between April 2024 and March 2025.

This trend indicates an opportunity for real estate agents to leverage global referrals, international community networks, and personal connections to facilitate business relationships and strengthen ties, ultimately facilitating deals, said SDAR’s Martin.

“We’re seeing a real resurgence in foreign buyer activity, and it's energizing the international real estate landscape here in San Diego and across the U.S.,” Martin said. “With nearly 60% of international purchases made entirely in cash and California among the top destinations, it’s clear that global confidence in our market is growing. This momentum is an incredible opportunity for our members to expand their reach and connect with international clients in meaningful ways.”

"According to NAR, foreign buyers are drawn to the U.S. because many metro areas are relatively affordable when compared to global city centers. But affordability is not the only factor. Foreign buyers are drawn to investing in U.S. real estate because of our country’s strong protection of private property rights.

“International interest in buying U.S. real estate increased following the global economic recovery from several years of pandemic-related disruptions,” says Lawrence Yun, NAR Chief Economist.

Martin outlined a few key points from the NAR report:

• Foreign buyers are paying more because they tend to lean heavily into the upper end of the market. The median purchase price among international buyers was $494,400, which was higher than the median price for the overall existing-home buyer purchase of $408,500.

• Cash is king. International buyers are more likely to use cash to complete their purchases. Nearly half (47%) of foreign buyers paid all cash, a huge contrast to just 28% among all U.S. existing homebuyers.

• Asian buyers remain the largest group of international purchasers of U.S. real estate, comprising a 38% market share.

• China regained its position as the top country of origin among foreign buyers in U.S. real estate, accounting for 15% of international buyer purchases, nudging out Canada as the previous year’s top origin country. The country-of-origin ranking and dollar amount of transactions for foreign buyers of U.S. real estate included: China, 15%, $13.7 billion; Canada, 14%, $6.2 billion; Mexico, 8%, $4.4 billion; India, 6%, $2.2 billion; United Kingdom, 4%, $2.2 billion.

Bloomberg News said NAR’s data shows that Chinese buyers are brushing aside concerns over U.S.-China geopolitical tensions and tighter visa policies. Instead, they are actively seeking overseas assets as a hedge against China’s economic slowdown following years of regulatory crackdowns on the private sector.

California remains a top destination, second only to Florida, which offers more housing inventory. Florida has been the top destination for foreign home buyers for the past 15 years. California overtook Texas this year as the second-most popular U.S. designation, accounting for 15% of purchases. The ranking for most popular U.S. states for international buyers included: Florida, 21%; California, 15%; Texas, 10%; New York, 7%; Arizona, 5%.

More U.S. real estate pros are working with international buyers. According to NAR, 20% of practitioners who identify as realtors reported working with at least one international client over the past year, up from 15% the prior year. Of the real estate agents who worked with foreign buyers, 72% said their leads came from personal contacts, referrals and business relationships.

Foreign buyers have more spending power. Nearly 1 in 5 foreign buyers (18%) purchased properties for more than $1 million, often in metropolitan, high-demand areas. Chinese buyers have the highest average purchase price at $1.2 million and continue to target mostly high-cost states, including California, Maryland, New York and Hawaii. Chinese buyers bought 11,700 homes during the period, almost double the number from the previous year. Mexican buyers had the second-highest average purchase price at $705,300.

Foreign buyers are focused on vacation and investment properties. Nearly 50% of international buyers purchased homes for vacation use, rental income, or both, significantly higher than the 16% of domestic buyers who did the same.

Foreign buyers have diverse property preferences. While 63% of international buyers purchased detached single-family homes, they also showed high interest in condos (especially Canadians, who sought a vacation home or residential rental) and residential land (especially Mexican buyers).

So, what does NAR’s report mean for San Diego regional real estate pros?
According to SDAR’s Martin, “It’s a clear opportunity to position our members and our region as international real estate leaders. We should continue supporting international education, outreach, and events to attract global investment to San Diego. And, we need to equip members with the tools to connect and close with these high-value, often cash-ready clients. Let’s keep promoting our international work, it’s making a difference, and the market is telling us there’s more to come.”