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Foreign Homebuying Drops in California as China Slowdown Seen

  • International purchases hit 8-year low, Realtors survey shows
  • Median price in largest U.S. state to increase 6.5% this year
New homes stand at the Shapell Industries Inc. Gale Ranch community in San Ramon, California, U.S., on Friday, Jan. 24, 2014. Purchases of new homes in the U.S. fell more than forecast in December, ending the industry’s best year since 2008 on a sour note.
Photographer: David Paul Morris/Bloomberg

International buyers are accounting for the smallest share of California home sales in at least eight years as prices climb and investors from China, the biggest source of foreign purchases, slow buying, according to the state’s Realtors group.

The share of international buyers fell this year to less than 4 percent, compared with a peak of 8 percent in 2013, the California Association of Realtors said in a report Thursday. The findings are based on a survey conducted in June of about 1,000 real estate agents. Since 2008, the first year agents were surveyed on the subject, results have shown foreigners representing at least 5 percent of transactions.