MIAMI – March 9, 2016 – Rising home prices have undermined foreign buyers’ demand for U.S. residential real estate, according to the National Association of Realtors® (NAR).
Many foreign buyers have been pulling back because they’ve been priced out of many of the cities they favor, including New York and San Francisco. A strong U.S. dollar has also played a role.
In January, the median price of existing U.S. homes had increased 67 percent for a buyer from Brazil once the monetary exchange rate is factored into the equation compared to January 2015. For a buyer from Canada, the median price increased 27 percent year-to-year, and 14 percent for a Chinese buyer.
Foreign buyers remain a small chunk of America’s housing market. However, pullback could have a disproportionate effect on demand for high-end condominiums in such markets as Miami and Manhattan.
On the other hand, falling foreign demand could help make residences more affordable for U.S. buyers. “Given that the U.S. currently has a housing shortage, any demand pullback helps,” says Lawrence Yun, NAR’s chief economist.
Source: Wall Street Journal (03/08/16) Kusisto, Laura
© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688