The National Association of Realtors reported that foreign buyers purchased $53.3 billion worth of existing U.S. homes from April 2022 through March 2023, slipping 9.6% from the previous 12-month period.

The number of homes purchased was down 14.2% from the prior year. At 84,600 properties sold, it was the fewest since 2009. In 2022, overall existing-home sales totaled 5.03 million, down 17.8% from 2021.

NAR surveyed members whose transactions included international clients who purchased and sold U.S. residential properties. Nar’s 2023 International Transactions in U.S. Residential Real Estate report showed that $23.4 billion worth of U.S. existing homes were bought by foreign buyers who resided in the U.S. as immigrants or held a visa — a 31.4% decrease from the prior year and representing 44% of the dollar volume of purchases.

Those who lived abroad purchased $29.9 billion worth of existing homes, up 20% from the prior 12 months, accounting for 56% of the dollar volume. International buyers accounted for 2.3% of the $2.3 trillion in existing-home sales during that period.

“Sharply lower housing inventory in the U.S. and higher borrowing costs across the world have dented international buyers for two straight years,” said NAR Chief Economist Lawrence Yun. “However, recovering international travel following the end of the pandemic will bring more foreign transactions in coming months and years.”

The average and median existing-home sales prices for foreign buyers were the highest ever recorded by the NAR. The average was $639,900. The median was $396,400 — 7% and 8.3% higher than the previous year, respectively. The price increase for foreign buyers reflects the rise in U.S. home prices.

Chinese buyers had the highest average purchase price at $1.23 million, with 33% purchasing property in California. In total, 15% percent of foreign buyers purchased properties worth more than $1 million from April 2022 to March 2023.

China and Canada remained first and second in U.S. residential sales dollar volume at $13.6 billion and $6.6 billion. Mexico ($4.2 billion), India ($3.4 billion), and Colombia ($0.9 billion) rounded out the top five.

“Home purchases from Chinese buyers increased after China relaxed the world’s strictest pandemic lockdown policy, while buyers from India were helped by the country’s strong GDP growth,” Yun added. “A stronger Mexican peso against the U.S. dollar likely contributed to the rise in sales from Mexican buyers.”

Florida has remained the top destination for foreign buyers, accounting for 23% of all international purchases for the 15th consecutive year. California and Texas tied for second (12% each), followed by North Carolina, Arizona, and Illinois (4% each).

“Florida, Texas, and Arizona continue to attract foreign buyers despite the hot weather conditions during the summer and the significant spike in home prices that began a few years ago,” Yun said.

Cash sales comprised 42% of international buyer transactions, compared to 26% of all existing-home buyers. Non-resident foreign buyers were likelier to make an all-cash purchase than resident foreign buyers. Two-thirds of Colombian buyers made all-cash purchases, the highest share among the top five foreign buyer nations. Approximately half of Canadian and Chinese buyers made all-cash purchases. Asian Indian buyers were the least likely to pay all cash.

Most foreign buyers purchased property for use as a vacation home, rental property, or both; almost three out of five international buyers purchased detached, single-family homes.