Every summer the National Association of REALTORS® counts how many homes in the United States went to buyers from other countries. The 2026 edition, covering April 2025 through March 2026, shows a quieter year: foreign buyers purchased 67,100 existing homes worth $45.3 billion, down 14% in units and 19.1% in dollars from the year before, and the second-lowest count since the survey began in 2009. International buyers made up about 1.7% of all existing-home sales.

If you are a buyer living outside the United States, or a recent arrival on a visa, that headline is not a reason to wait. It means fewer buyers like you are competing for the same homes, and the fundamentals that made American real estate attractive in the first place have not changed. Here is where the market stands this fall and what it takes to buy well from abroad.

The numbers behind the headline

  • Who is buying: Canada (16% of purchases), Mexico (14%), China including Hong Kong and Taiwan (11%), India (9%), and the United Kingdom (4%). Chinese buyers spent the most in dollars, $7.6 billion, because they bought higher-priced homes, many of them in California.
  • Where they buy: Florida took 20% of foreign purchases and California 19%, followed by Texas at 12%. California buyers paid a median of $965,900, more than double the national foreign-buyer median of $465,000.
  • How they pay: 48% of foreign buyers paid all cash, against 28% of U.S. buyers overall. In California, 69% of international buyers live outside the country and 38% bought a primary residence; the rest bought vacation homes, rentals, or a base for family and students.
  • Who they are: 56% of foreign buyers already live in the United States on a visa or green card. Non-resident buyers were 44% of purchases but 52% of the dollars, so the overseas buyer is typically shopping higher up the market.

NAR chief economist Lawrence Yun tied the slowdown to fewer international visitors in general, noting that even a slightly weaker dollar over the past year, which gives overseas buyers more purchasing power, did not pull more of them in. Put plainly: the currency math has moved in your favor while the crowd has thinned.

Rates, cash, and the dollar

Borrowing costs are the headwind. Freddie Mac put the average 30-year fixed rate at 7.28% on October 1, 2026, up from 6.34% a year earlier. That matters less to the half of international buyers who pay cash, and a cash offer carries real weight with sellers in a market where homes now sit for about a month before going into contract.

Financing is still available if you need it. Foreign national loan programs do not require a U.S. credit history; lenders look instead at your passport and visa status, bank reference letters, proof of income or assets from home, and a larger down payment, commonly 25% to 35%. Expect a rate above the headline figure and a slower approval, so start the lender conversation before you start touring. Buyers who have an Individual Taxpayer Identification Number (ITIN) from the IRS, obtained with Form W-7, have more lender options.

On the currency side, a dollar that has softened over the past year stretches euros, pounds, pesos, and yuan further than they went in 2025. Exchange rates move daily, so if you are converting a large sum, lock a rate with your bank or a currency specialist close to your closing date rather than guessing weeks ahead.

Rules of the road in California

  • You can buy here. As of August 2026, 26 states have enacted some restriction on foreign ownership, mostly aimed at farmland, land near military bases, or buyers tied to a handful of specific governments. California has none of these restrictions on residential property. Anyone with a passport and funds can hold title to a home in Los Angeles County.
  • FIRPTA is a prepayment, not a penalty. When a foreign owner eventually sells, federal law requires the buyer to withhold 15% of the sale price and send it to the IRS (10% on homes between $300,001 and $1,000,000 that the buyer will live in, and zero at or below $300,000). The seller then files a U.S. tax return and gets back whatever exceeds the actual tax owed. Plan for the cash-flow timing, not the headline percentage.
  • Decide how to hold title before you write an offer. Buying as an individual, through a U.S. LLC, or through a trust changes your income-tax filing, your exposure to U.S. estate tax (the exemption for non-residents is only $60,000, versus millions for citizens), and how easily heirs can inherit. A cross-border tax advisor earns their fee here; involve one early.
  • You do not have to fly in to close. California escrow companies routinely close with overseas buyers through wire transfers, remote notarization, or documents notarized at a U.S. consulate and apostilled. Budget two to three extra weeks for international wires and consular appointments.
  • Plan for the empty months. If the home will sit vacant part of the year or be rented out, line up property management before you close so insurance, utilities, and tenants are handled while you are abroad.

Why the South Bay fits an international buyer

The South Bay sits between Los Angeles International Airport and the Port of Los Angeles, which is why it has long drawn families and professionals from Asia, Latin America, and Europe. Within that stretch, prices vary enormously. Manhattan Beach commands medians above $3 million; Torrance sits above $1 million; San Pedro, with the harbor, the Palos Verdes hillside next door, and the new West Harbor waterfront promenade, still has an entry point near $830,000. For a buyer measuring value against London, Vancouver, Shanghai, or Mexico City, that is coastal Southern California at a price those cities no longer offer.

Our market research pages show pricing, inventory, and days-on-market trends for each South Bay city, by property type, so you can compare neighborhoods from wherever you are. If you plan to rent the home out while you are abroad, our property management team handles leasing, rent collection, and maintenance from our San Pedro office.

What to do next

  • Get your paperwork in order first: a valid passport, proof of funds in a form a U.S. escrow officer can verify, and an ITIN application if you will finance or rent the home.
  • Talk to a cross-border tax advisor about how to hold title before you fall in love with a house.
  • If you are financing, get a foreign national pre-approval so your offer can compete with the cash buyers who make up half of this market.
  • Work with a local brokerage that has closed with overseas buyers and can handle showings, inspections, and escrow while you are twelve time zones away.

Fewer international buyers, a softer dollar, and homes that take a month to sell add up to a window that did not exist two years ago. If you are weighing a purchase in the South Bay from outside the country, reach out and we will walk you through it step by step.