In 2016, the median Chinese buyer was looking at an American home priced at $572,000, while the median American homebuyer was looking at a $253,000 home, according to a Zillow report.
Coastal markets are apparently attractive to Chinese home shoppers, as 32.3% of them focused their searches on the markets of San Jose, San Francisco, Seattle, Los Angeles, San Diego and Boston, while only 7.5% of American buyers looked at homes in these cities.
In the company’s analysis, U.S. buyers were looking at home prices ranked at the 57th percentile of target list prices, while the Chinese were looking at home prices in the 73rd percentile. The 16-percentage-point gap suggests that the Chinese are
competing with wealthy American homebuyers.
Detroit, Miami-Fort Lauderdale, Boston and Seattle have the biggest gaps between Chinese shoppers and the Americans, while the narrowest gaps were recorded in Phoenix, Atlanta and Dallas-Fort Worth.
Last month, Peter Turtzo, a Berkshire Hathaway Homeservices exec, told Reuters that on average, Chinese investors spend in the “mid-$900,000s” on U.S. home purchases – a testimony to their purchasing power.
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Chinese homebuyers are getting more serious when it comes to purchasing American homes, as the gap between the median prices of homes sought by American buyers versus the Chinese is widening, with the latter aiming at a higher-priced market.