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Mandarin Speaking Buyers Lead in Paying Cash

by Lolita Thomas

foreign-home-sales-2014-strong-dollar-international-real-estate

According to RealtyTrac and Ethnic Technologies, the share of Mandarin Chinese-speaking buyers paying in cash has increased to 46 percent in 2015, a 229 percent increase from 2005. This increase puts Mandarin Chinese in the lead in terms of cash sale market share among language groups.

Cash deals among all language groups have increased 65 percent in the past decade, from 20 percent in 2005 to 33 percent this year. Other language groups have seen an increase as well. Among Hindi- and English-speaking buyers cash sales rose three percent and among Arabic speakers, one percent.

Daren Blomquist, vice president at RealtyTrac, noted that the spike in cash home sales will be short lived once foreign interest fades.

“Foreign cash buyers have helped to accelerate U.S. home price appreciation over the past few years given that these buyers are often not as constrained by income as local, traditionally financed buyers,” Blomquist said.

“Markets with a higher share of foreign cash buyers may expect to see a stronger upside in the short term given the continued global economic instability,” Blomquist noted,“but those markets are also more susceptible to a downside in the longer term when demand from foreign cash buyers dries up.”

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