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Existing home sales: Foreigners are buying. What's their impact?

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Take Florida. All by itself, the foreclosure-battered state attracted 31 percent of all foreigners' purchases, according to the NAR. In a separate survey in conjunction with its Florida branch, the NAR estimated that foreigners accounted for a quarter of all the state's residential sales in the 12 months ending in June 2011. That level of sales can have a big impact.

Foreign sales in Florida may be doing more than buoying the market. "Iit may be enough to turn it around, depending on the selling pressures," writes Susan Wachter, professor of real estate and finance at the University of Pennsylvania's Wharton School  in Philadelphia, in an e-mail. "It is not just that a quarter [of buyers] are foreigners, it is that foreigners are likely to be the marginal buyers – those that are offering top dollar. Their wealth has not been hit by the crisis, unlike the balance sheet of the US buyer."

Two other states hit hardest by the housing bust are among the four most popular states for international buyers, according to the NAR: California (12 percent of international sales in the US) and Arizona (6 percent).

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