Where in the world are all these buyers coming from?

It's been just over two years since the American housing market hit its lowest point, in March, 2012. We are just starting to see a heartbeat in the market again here in the Lower Hudson Valley. One significant contributing factor to the up-tick in sales is coming from a surprising place - foreign investors!

Overseas buyers see value in the American market because they consider it a good time to buy, just as the market is beginning to rebound. The combination of favorable housing prices, the ubiquity of the English language and the relative stability of the US economy make American real estate an attractive investment, for both income properties and for second homes.

So where in the world are the foreign investors coming from?

According to a new study out by the financial consulting firm 24/7 Wall St, one source of interest is found in nations with high numbers of high net-worth residents. Three countries, Germany, the United Kingdom and China were in the top five countries with significant numbers of mega-wealthy. Each had more than 100,000 residents in that category. For these buyers, America's reputation as a relatively safe haven for investment makes real estate all the more attractive for wealthy foreign buyers looking for a place to stash some cash.

The English language may play a part in investors choosing American real estate. English speaking countries accounted for 65% of all foreign buyers. Australia and the UK both were high on the list of nations coming to buy. But not all buyers are from English speaking nations. Europe plays a big part in this influx of foreign buyers. Six of the ten nations coming to America to buy are from western Europe, including Switzerland and France.

So what country has the most interest in snapping up American turf? Our neighbors to the north, Canada, accounted for 45% of international residents looking to buy homes in the U.S. Canadians see the value of the American dollar and the more temperate climate as reasons to buy.

24/7 Wall Street's Top Ten International Home Buyers

10. Germany
Deutschland had the second highest number of ultra high net worth residents and the second highest share of international prospective buyers. In spite of the weakness of the Eurozone economy, no EU nation's economy grew faster than Germany's.

9. Sweden
The number of Swedes buying in America doubled between 2009 and 2013, with the lions share of this growth happening last year. Also contributing are the precariously high home prices in Sweden, which make US homes seem a real bargain.

8. Canada
Proximity to the United States and our cultural similarities make American homes a comfortable investment for Canadians. Also, a strong Canadian economy may have allowed residents a little more cash to invest.

7. Australia
Also a country with a strong economy, Australia's interest grew by 3.7% in 2012, and an estimated 2.5% last year. An increasingly valuable Australian dollar also puts more cash into potential investor's hands.

6. United Kingdom
Great Britain's interest in American real estate increased by 34% in recent years according to Realty Trac, the real estate marketing firm. U.K. residents are mostly interested in single-family homes in the suburbs and in popular American resort towns.

5. Italy
A bad Italian economy may be a help in sending buyers to America. U.S. property must seem a good investment for Italian buyers, and it doesn't hurt that Italy is home to a relatively high percentage of extremely wealthy people with lots of Lira to invest globally.

4. France
President Francois Hollande’s socialist policy decisions may be causing residents to be leaving the country due to subsequent high taxes and tougher regulations on investment.

3. China
China is a major source of international interest in real estate in America. Contributing factors are fears that China's rampaging economic growth may be slowed by rampant shadow banking and wealthy residents seeking a stable, growing real estate segment in the American economy.

2. Switzerland
Switzerland is second only to the United Arab Emirates in the number of prospective home buyers. Swiss residents comprised 2% of the world's international property searches, even though the nation's population of about 8 million is less than that of New York City.

1. United Arab Emirates
This tiny country has shown the highest percent of increased interest in American soil between 2009 and 2013. Realty Trac subscriber increased 352% in those years, probably due to the large percentage of extremely wealthy residents there.

Originally published as "Where in the world are all these buyers coming from?"