“The strong US dollar makes international travel cheaper for Americans but makes US homes much more expensive for foreigners,” NAR chief economist Lawrence Yun explained. “Therefore, it’s not surprising to see a pullback in US home sales from foreign buyers.”
The report, which surveyed NAR members about transactions with international clients, revealed that foreign buyers who resided in the US as recent immigrants or visa holders purchased $22.6 billion worth of existing homes, a 3.4% decline from the previous year. Foreign buyers living abroad spent $19.4 billion, a significant 35% drop from the prior 12 months.
“Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike,” Yun added.
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Despite the overall decline in purchases, the average ($780,300) and median ($475,000) existing-home sales prices among international buyers reached record highs, increasing 21.9% and 19.8% respectively from the previous year. This price surge reflects the overall increase in US existing home prices, which climbed to $392,600.
Source: mpamag.com