Discover how foreign investment in existing home sales in the United States decreased by 9.6%, reaching $53.3 billion. Get insights into international buyer trends, preferred destinations and economic implications.

Foreign investment in the US real estate market has experienced a significant change in recent years. According to a recent report from the National Association of Realtors (NAR), foreign investment in existing home sales in the US has decreased by 9.6% in the last 12-month period, reaching a total of $53.3 billion. This article delves into the key trends that have led to this decline and examines the implications for the housing market and the broader economy.

Decrease in International Buyers in the Used Home Market

During the period from April 2022 to March 2023, foreign buyers purchased a total of 84,600 properties in the US, a decrease of 14.2% compared to the previous year . These figures mark the lowest level of purchases since 2009, when the NAR began. to track this data. Additionally, total existing home sales in the United States decreased by 17.8% in 2022 compared to 2021, standing at 5.03 million.

Factors that Contributed to the Decline

According to NAR Chief Economist Lawrence Yun, two main factors have contributed to this decline in foreign investment. First, the shortage of housing inventory in the United States has limited the options available to international buyers. Second, higher borrowing costs around the world have also negatively affected demand from foreign buyers.

Despite these circumstances, Yun suggests that the recovery in international travel after the end of the pandemic could lead to an increase in foreign transactions in the coming months and years.< /p>

Purchasing Patterns and Preferred Destinations

The NAR report reveals interesting patterns in terms of nationalities and preferred destinations. Chinese and Canadian buyers topped the list in terms of dollar volume spent on U.S. residential home sales, with $13.6 billion and $6.6 billion respectively. Mexico, India and Colombia completed the top five.

As for destinations, Florida remained at the top for the fifteenth consecutive year, representing 23% of all international purchases. California and Texas tied for second place with 12% each.

Impact on Housing Prices

The report also points out an impact on the prices of homes bought by foreigners. The average ($639,900) and median ($396,400) residential home prices were the highest recorded by the NAR, increasing 7% and 8.3% respectively compared to the previous year. These increases reflect the general trend of rising prices in the US housing market.

Conclusion and Future Perspectives

Despite the decline in foreign investment in US existing home sales, there are signs that the trend could reverse as the global economy recovers from the effects of the pandemic. NAR's efforts to foster investment in dynamic communities and facilitate connections between global real estate professionals and international investors will play a crucial role in the future of the U.S. real estate market.

For more details and figures from the full report, you can visit nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate. If you are interested in real estate investing in the US, this report provides valuable information on current and future trends.

This article has explored the decline in foreign investment in existing home sales in the United States according to the most recent NAR report. As the real estate market continues to evolve, understanding these trends and underlying factors is essential for investors, professionals in the sector and those interested in the economy in general. Contact us for professional advice.