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Texas Ranks #3 In International Home Sales

A report notes more than 65 percent of homes purchased are by Mexican home buyers.

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Texas home sales

New figures show that international home sales added more than $11 billion dollars to the Texas economy from March of last year to March of 2014. That’s according to theTexas International Homebuyers Report submitted by the Texas Association of Realtors.

Preceded by states, Florida and California, Texas ranked as the third-largest state in the U.S. for international home sales, with a majority of purchases originating from Latin America and the Caribbean, particularly Mexico.

The report notes that over 65 percent of homes purchased in the U.S. by Mexican home buyers were in the Lone Star State.

Here’s Richard Miranda of the Texas Association of Realtors.

“Mexico is our next door neighbor and it is our largest trading partner. And it is a natural movement for a lot of the Mexicans to move to Houston or San Antonio or Austin because of our proximity. There’s a lot of family connections, cultural connections, and economic connections between Mexico and Texas.”

“A lot of the Mexican buyers used to have to buy properties with cash but now because of the financing has eased a little bit. 46% of the buyers from Mexico are buying (with) cash as opposed to — it used to be about 65%, so I noticed that there is a trend that one of the reasons that more of the Mexicans are buying here is because financing is slightly more accessible to them than it was two years ago.”Miranda also points to how lending standards in Texas have eased, allowing more Mexican buyers to consider purchasing homes with a mortgage.

Texas continues to be a hub for migrants to the United States, with real estate sales along bordering cities also seeing a dramatic increase. Miranda says these bordering cities continue to become major beneficiaries of this migration of homebuyers from Mexico.

“By looking at the statistics, San Antonio, El Paso, McAllen — well, San Antonio is not exactly a border town but it’s only two and half hours from Laredo — so McAllen and El Paso which are border cities continue to experience growth and the Mexican buyers are buying properties on this side of the border.”

He adds that as the economy grows, the number of international homebuyers in the state will continue to increase.

“Mexicans purchased approximately 4.5 billion dollars worth of properties here in Texas – and that’s significant. How much more is it going to grow next year, who knows — but I don’t think it’s going to go down anytime soon.”

According to the report, six of the top 50 metro areas for immigration in the U.S. are in Texas. Houston ranked at #6, with suburbs Sugar Land and Baytown seeing increases in home sales.