Home industry real-estate International Buyers Withdraws from U.S. Housing Market Due to High Prices and Dollar Strength
Real Estate
CIO Bulletin
2024-07-23
A severe 36% fall in foreign investment in US homes is caused by skyrocketing prices and currency difficulties.
International investment in the U.S. housing market is significantly declining; from April 2023 to March 2024, foreign purchasers bought 54,300 existing properties in the U.S., a sharp 36% decrease from the same period the previous year, according to the National Association of Realtors (NAR). This represents the lowest level of foreign investment since the tracking period started in 2009, and the dollar amount has decreased by 21% to $42 billion.
Highly elevated median ($475,000) and average ($780,300) property values have made properties increasingly expensive for international buyers, particularly from Canada, China, Mexico, and India. These buyers traditionally favor states like Florida, Texas, California, and Arizona.
While new developments, not reflected in the NAR data, also attract foreign investment, hurdles such as unfamiliar financial processes and political uncertainty ahead of the presidential election further deter international purchases.
The NAR reports that foreign buyers, comprising 1.3% of total U.S. home sales annually, predominantly transact in cash, highlighting their substantial impact on the market dynamics.
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