Home News Foreign Purchases of U.S. Homes Fall to New Low

Foreign Purchases of U.S. Homes Fall to New Low

by admin
0 comment

Foreign purchases of US homes have declined for the fifth consecutive year as the pandemic continues to restrict overseas travel. Strong dollar..

Foreigners bought 98,600 US homes in the year ended March, down 7.9% year-on-year, according to a report released Monday by the National Association of Real Estate Agents. This is the lowest level ever since NAR began collecting data in 2009.

However, the dollar value of residential real estate purchased by overseas buyers increased 8.5% to $ 59 billion, reflecting a significant increase. U.S. house pricesNAR said.

Purchases by foreign buyers accounted for 1.6% of pre-owned home sales for the year ended in March.

The US housing market has grown rapidly over the last two years due to fierce competition from buyers. Limited number of houses It is on the market. Lawrence Yun, chief economist at NAR, said that one of the silver linings for domestic buyers was intensifying competition with foreign countries.

Yun expects to make traveling to the United States easier and increase foreign investment in US real estate. Home supply It is increasing in the market.

“I think foreigners will intervene as domestic buyers get priced from higher mortgage rates,” he said.

The most popular destination for foreign buyers for the year ending March was Florida, followed by California, Texas, Arizona, and New York.

In Manhattan, real estate agent Parisa M. Afkami said her overseas customers were this spring. U.S. has relaxed travel ban The surge in vaccinated foreign visitors and Covid-19 in the winter has subsided. “There was a lot of sickening demand,” she said.

Stronger dollar Made US real estate more expensive for foreign buyers. The WSJ Dollar Index, which tracks the dollar against baskets of other currencies, increased 4.04% in the year ended in March and has continued to rise ever since.

Foreign investment in US housing peaked at $ 153 billion in the year ended March 2017.

Despite the projected chill in the housing market in 2022, mortgage rates have skyrocketed in recent months, but US home prices are still at record highs. WSJ’s Dion Rabouin explains what is driving demand, evidence of a slowdown in the horizon, and what that means for the economy.Photo composition: Ryan Trefes

Chinese buyers accounted for the largest amount of overseas purchases of $ 6.1 billion in the year ended in March, but due to the management of foreign purchases by the Chinese government, investment was $ 31.7 billion at the peak of 2017. Has decreased significantly from. Canadians were the top foreign buyers in the number of homes purchased in the year ended in March.

Foreign buyers can have a significant impact on the housing market in certain cities, such as New York and Miami, which make up the majority of buyers.

According to NAR, the median purchase price for foreign buyers for the year ended March was $ 366,100, while all previous home sales in the United States during the same period were $ 355,700.

According to NAR, about 57% of foreign buyers over the past year are recent immigrants or foreigners living in the United States who tend to buy US homes as rental or vacation homes and tend to pay in cash. there is.

Write to Nicole Friedman [email protected]

Copyright © 2022 DowJones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

You may also like