US Housing Market: Rising mortgage rates, house prices, a scarcity of properties for sale, and a strong currency deter international purchasers from the U.S. housing market.
Foreign buyers purchased 84,600 houses from April 2018 to March 2019. The National Association of Realtors began tracking in 2009. 14% less than last year.
Foreigners paid more for fewer properties. Realtors reported a record $396,400 average price.
Foreign purchasers from China, Mexico, Canada, India, and Colombia purchased the most residences, not money. This survey doesn’t examine new construction, another popular foreign buyer category.
Chinese bidders paid the most, $1.23 million. Because one-third invested in California, where property prices are most incredible. 15% of international purchasers purchased million-dollar properties.
The NAR’s chief economist, Lawrence Yun, said that Chinese house sales increased when China loosened its pandemic lockdown, while Indian purchasers benefited from robust GDP development. Mexican sales may have increased due to a stronger peso versus the dollar.
Chinese purchasing soared while overseas sales fell. Juwai IQI, an Asia-based international real estate technology business, said that 2023 saw the most Chinese house acquisitions since 2018, one of the most vital years for Chinese international property transactions.
Juwai IQI co-founder and group CEO Kashif Ansari said the typical Chinese buyer has shifted from an offshore investor to someone who wants to live and work in the U.S. Only 10% of Chinese purchasers buy for investment. In the mid-2010s, wealthy Chinese purchasers desired to invest abroad.
Florida, California, Texas, North Carolina, Arizona, and Illinois still attract 23%, 12%, 12%, 4%, 4%, and 4% of foreign purchasers. Chinese consumers choose California for its schools and institutions.
42% of international buyers pay cash. 50% purchase properties for vacations, rentals, or both, up from 44% last year.
Even while global sales are down, this won’t make buying in your country more straightforward. Over 2% of purchases were foreign. This tendency may slightly impact specific local markets, particularly those international purchasers enjoy.
Homebuyers are concerned about mortgage rates, which have risen since the outbreak, and the lack of properties for sale.
Our Reader’s Queries
Are US housing prices going down?
Buying a home today comes with a hefty price tag, as Zillow reports a 40% increase in prices compared to February 2020. The National Association of Realtors (NAR) also reveals that home prices have grown in over 80% of U.S. metro areas year over year, with the third quarter of 2023 alone showing significant growth. It’s a challenging market for homebuyers, but with the right strategy and guidance, it’s still possible to find your dream home.
Is the US housing market currently overvalued?
According to Fitch Ratings, national home prices were overvalued by 9.4% in 2Q2023 on a population-weighted average basis. The rise in home prices in Q3 is expected to keep the overvaluation elevated.
Will home prices drop in 2024 Florida?
According to Redfin, new listings and home sales are expected to increase in 2024. However, prices are predicted to drop significantly in certain areas of coastal Florida, like Cape Coral. This is due to the rising cost of home insurance caused by the risk of natural disasters.
Where is the cheapest house in USA?
Looking for an affordable place to buy a house in the US? Look no further than West Virginia, with a Zillow Home Value Index of just $155,148. Other budget-friendly options include Mississippi, Oklahoma, Arkansas, Louisiana, Kentucky, Iowa, and Kansas. Don’t break the bank on your next home purchase – consider these 10 cheapest housing markets.