As we delve into the current state of international buyers in the U.S. real estate market, it is clear that they are facing some unique challenges in today’s economic landscape. With high prices, tight supply, and a strong U.S. dollar, foreign buyers are finding it increasingly difficult to invest in U.S. residential properties.
According to a recent report from the National Association of Realtors (NAR), international buyers purchased 36% fewer existing homes from April of last year to March of this year compared to the previous year. This is the lowest level of international investment since 2009, with a total dollar volume of $42 billion, down 21% from the year before.
The report highlights that both the average and median purchase prices for foreign buyers were the highest ever recorded by the NAR. The top buyers by volume hailed from Canada, China, Mexico, and India, with Chinese buyers spending the most money on higher-priced homes.
One of the key obstacles for foreign buyers is the complexity of the U.S. real estate purchasing process, as highlighted by Yuval Golan, CEO of Waltz. Golan’s company aims to simplify the experience for foreign investors by providing a streamlined approach to purchasing U.S. real estate within 30 days, including underwriting in their home country, setting up an LLC, and facilitating foreign currency exchanges.
Despite these challenges, international buyers only make up 1.3% of all U.S. home sales annually, with half of their transactions being all-cash purchases. With the upcoming presidential election adding to the uncertainty, it is unlikely that sales from foreign buyers will improve in the near future unless certain economic and political factors shift.
At Extreme Investor Network, we understand the complexities and nuances of the real estate market, especially when it comes to foreign investment. Stay tuned for more insights and analysis on how international buyers are navigating the current landscape and how you can leverage this knowledge to make informed investment decisions.