International Buyers Slowed Down By Strong US Dollar

Posted by John Sabia on Monday, August 3rd, 2015 at 10:37am.

Foreign Buyers bought up almost 3 percent of US real estate in the first four months of 2014. However, in 2015 looking at January thru April, the percentage of foreign buyers dropped to 2 percent.

The National Association of Realtors® found approximately 75 percent of real estate agents agreed that weaker foreign exchange rages have had a modest to considerable effect on foreign buyers.

Canada, Mexico, China, India and the United Kingdom combined account for 51 percent of all US real estate purchases by foreign buyers. The largest slow down has been with Canadian Buyers, who have cut back buying US properties by 34 percent.

Almost fifty percent of property purchases by Canadian citizens are in Dade, Broward and Palm Beach counties from Miami - Fort Lauderdale and West Palm Beach.  These areas have seen roughly eight percent increases in home prices from the previous year.

In contrast, the Hong Kong dollar has outpaced the US Dollar and until recently, the Yuan has been stable with the US dollar. Because of this, Chinese Buyers have been the number 1 purchasers of international sales since 2013 buying up properties valued at $12.8 billion in 2013 and $22 billion in 2014. Projections for this year are for $28.6 billion.  Read more here..

photo of US Dollar

John Sabia

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