Surge in US foreign property purchases

There could be a boost in money transfers to the US after research has found that an increasing number of foreign property buyers are looking across the Atlantic for a bargain.

Indeed, the data from the 2011 Profile of International Home Buying Activity revealed that the US has seen international purchases surge by $16 billion (£9.92 billion) this year.

This is one of the highest increases in recent years and saw total residential international sales in the country for the year ending March 2011 reach $82 billion.

President of the National Association of Realtors Ron Phipps commented: "The US has always been a desirable place to own property and a profitable investment.

"In recent years we have seen more and more foreign buyers coming here to take advantage of low prices and plentiful inventory."

He added that buyers are being drawn in by the advantageous market conditions as well as the fact that realtors working in the US are able to offer their clients a global perspective.

However, the foreign exchange rate between sterling and the US dollar is not in favour of British buyers at the moment.

Over the course of the past month, the pound has fallen from a high of $1.67 at the end of April to $1.61 today (May 24th) at 10:00 BST.

As such, Britons who are looking to purchase property in the US should take care to choose the best way to transfer money to avoid losing out unnecessarily.

Money transfers made through a foreign exchange broker are likely to be some of the most competitive prices on the US dollar.

Meanwhile, Mr Phipps noted that agents have been seeing some new factors motivating foreign buyers.

These include people purchasing property in the US for their offspring studying overseas, as well as foreign executives who sometimes prefer to purchase a house rather than rent when working temporarily in the US.

The states with the highest concentration of international buyer activity have remained consistent over the past five years.

Florida has retained 31 per cent of total international transactions, while California had 12 per cent, Texas nine per cent and Arizona six per cent.

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Posted by Eleanor Ward