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rizona is among the top 10 destinations among the 50 states, according to the Phoenix Business Journal. The National Association of Realtors' report titled "Profiles of International Transactions in U.S. Real Estate" tracks international clients who bought and sold residential properties during the 12-month period ended in March. Arizona accounts for 5 percent of all purchases by foreign buyers, ranking No. 4 nationally behind Florida, Texas, and California.

    The glow that comes with a spot in the upper ranks is somewhat dimmed by an overall drop in sales to foreign buyers. The total of just over 54,000 sales nationwide represents a decline of 36 percent from the prior period — about 30,000 fewer deals. The amount of money that crossed the border also dropped to $42 billion in total value, a decline of 21.2 percent.

    Canadians did the most deals nationally as well as in Arizona, combining for $5.9 billion worth of business to account for 13 percent of the overall value. The next biggest sources of international buyers were Mexico and China, each accounting for 11 percent of the value, followed by India at 10 percent and Colombia at 4 percent.

    High taxes in Canada are prompting investments in the U.S., according to Glenn Williamson, CEO and founder of the Canada Arizona Business Council. "Canadians are now paying a 43 percent tax rate in Canada," Williamson said. "A lot of them like to have a second home down here. It's not just the seniors that come down and spend money."

    The median price on sales to foreign buyers was $475,000, about $80,000 more than domestic buyers. Despite elevated mortgage rates, pent-up demand, and low available housing inventory, U.S. median home prices have remained strong — even increasing on a year-over-year basis, according to the study. Nearly one in five sales to foreign buyers came in over $1 million, and more than half of the deals were in cash.