Report shows foreign buyers pouncing on cheap U.S. housing

Research conducted by RealtyPartner found European home buyers are taking advantage of low U.S. real estate now, believing the prices will recover in the next five years.

The study showed around $16 billion worth of U.S. real estate properties have been purchased by foreign buyers, and 62 percent of those were bought in cash. RealtyPartner chairman and founder, Mark Quinones, believes cheap prices and no stipulations is what is attracting the foreign buyers to the U.S. housing market.

The U.S. Department of Housing and Urban Development with the U.S. Census Bureau recently released estimates for new residential sales in May 2011. The report said sales of new single-family homes in May were at a seasonally adjusted annual rate of 319,000, or 2.1 percent below the April 2011 rate of 326,000, and 13.5 percent above the May 2010 rate of 281,000.

Canadians and Chinese buyers have purchased the highest number of U.S. real estate, with other buyers from Italy, France and Spain contributing as well, according to RealtyPartner. 

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