Purchases by foreign buyers during April 2020–March 2021 decreased by 27% to $54.4 billion 2021-07-26
Gulf Coast Real Estate Update
July 26th, 2021
Foreign buyer activity down 27%
As the global economy and foreign travel shrank in 2020, the dollar volume of U.S. existing-home purchases by foreign buyers during April 2020–March 2021 decreased by 27% to $54.4 billion. The dollar volume of foreign buyer purchases amounts to 2.8% of the $5.8 trillion of existing-home sales during this period, a decrease from the 4.4% share in the prior period.
The recent downturn is not surprising considering travel restrictions associated with the coronavirus. What is surprising is that foreign buyer activity has been trending downward since 2017. A U.S. housing shortage is part of the problem, though there are other economic factors at play:
Strong US dollar makes it harder for overseas investors to afford U.S. Real Estate.
Decline in international tourism
Falling international trade
Fewer foreign students attending American universities
Concerns about the Delta variant, and the overall trajectory of the pandemic, are undoubtedly affecting economic growth. While the economy continues to mend, Treasury yields have decreased, and mortgage rates have followed suit. Unfortunately, many homebuyers are unable to take advantage of low rates due to low inventory and high prices.
