Breaking News: Foreign Homebuyers in the US at All-Time Low

In recent years, the US real estate market has seen a significant decline in the number of foreigners purchasing houses.

In recent years, the US real estate market has seen a significant decline in the number of foreigners purchasing houses. This downward trend can be attributed to several factors, including high mortgage rates, soaring home prices, limited supply, and the strength of the US dollar. According to the National Association of Real Estate Agents, the period from April last year to March this year witnessed the lowest level of foreign homebuyers since 2009, with a decrease of 14% compared to the previous year.

While the number of homes purchased by foreigners has dwindled, the overall amount these individuals are spending on properties has increased. The median price of homes bought by foreigners has reached a record high of $396,400. Among the countries with the highest number of homebuyers in the US are China, Mexico, Canada, India, and Colombia.

Chinese buyers, in particular, have a significant impact on the US housing market, with an average home purchase price of $1.23 million. This can be partially attributed to roughly one-third of Chinese buyers opting for properties in California, where home prices tend to be the highest. Remarkably, 15% of foreign buyers are acquiring homes with a price tag exceeding $1 million.

The lifting of epidemic control policies in China has contributed to a surge in home purchases by Chinese nationals, while Indians are driven by their country's robust economic growth. Additionally, the strengthening of the Mexican peso against the US dollar has likely led to an increase in home sales to Mexicans.

Although the overall number of homes sold to foreigners has declined, there has been a notable rise in the number of properties purchased by Chinese buyers. Juwai IQI, an international real estate technology group based in Asia, reports that 2023 is projected to be one of the peak years for Chinese homebuyers since 2018.