Florida is overwhelmingly the top location for foreign buyers, with nearly a quarter of international purchases happening there. It is followed by California, Texas, Arizona, New York and North Carolina.

In areas popular with foreign buyers, there can be increased competition to buy. But, as Yun noted, even in popular areas foreign buyers make up just 3% of purchases. Overall, the report found, 1.6% of existing home sales nationally are to foreign buyers.

"For residents in these areas, it may feel like foreigners are competing for homes with locals. Sellers, of course, are trying to get the highest possible price independent of who the buyer is," he said. "But it can be frustrating for buyers who are outbid."

Florida is overwhelmingly the top location for foreign buyers, with nearly a quarter of international purchases happening there. It is followed by California, Texas, Arizona, New York and North Carolina.

In areas popular with foreign buyers, there can be increased competition to buy. But, as Yun noted, even in popular areas foreign buyers make up just 3% of purchases. Overall, the report found, 1.6% of existing home sales nationally are to foreign buyers.

"For residents in these areas, it may feel like foreigners are competing for homes with locals. Sellers, of course, are trying to get the highest possible price independent of who the buyer is," he said. "But it can be frustrating for buyers who are outbid."