Wealthy foreign buyers are slowly returning to US real estate market

Everyone knows that it was difficult for a buyer to purchase a house.  The housing market in the US was very competitive with many bidding wars. There was simply not enough supply of homes availabe and prices were skyrocketting.  However, it could have been much worse.,  During the 2 years of Covid-19, many foreign buyers completely disappeared from the US housing market.  Most of them were not able to travel to US due to the large number of constraints that were put in place at the borders.

However, that has started to change. International buyers are back in the US real estate market.  Based on a study of National Association of Realtors, from April 11, 2021 through May 9, 2022 international buyers snapped up 98,600 residential properties last year, totaling $59 billion. “For the second year in a row, restrictions and general caution tied to international travel during the pandemic slowed home buying by wealthier foreign buyers,” said Lawrence Yun, NAR’s chief economist.

Moreover, foreign real estate buyers are spending more money to acquire US houses.  On average, foreign buyers spend almost $600,000 on a house, which is 17.7% higher than previous year. Furthermore, Chinese buyers paid on average the highest price for a house, namely more than $1,000,000.

Read all the details here.