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.