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Real Estate News | Foreign Buyers Pump Up U.S. Home Prices

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Real Estate News | Foreign Buyers Pump Up U.S. Home Prices

News reports on real estate across the country are speaking more and more about one thing: foreign buyers. From Manhattan to San Francisco, U.S. home prices are rising harder and faster than they have in years, thanks to foreign interest and investment in American real estate properties. More foreign mortgage lenders are entering the market, building relationships with established Realtors

The U.S. housing market appears to be getting a boost from a huge influx of buyers from around the world, including some from Canada, where policies are cooling the real estate market.

Foreign buyers who obtained loans backed by U.S. real estate pumped up prices in many hot housing markets, often sparking bidding wars that may have pushed some sales prices higher, according to a Wall Street Journal analysis of home-purchase notices filed with one state agency.

Foreign Buyers Pump Up U.S. Home Prices

The U.S. housing market is booming again, with home prices rising and record numbers of sales every month. Most of that demand comes from American buyers, but an increasing number of foreign nationals are also looking to get in on the action: In fact, foreign home buyers have been responsible for super-charging the biggest gains on the U.S. real estate market. In another report out today, analysts at Goldman Sachs said foreign buyers are helping to drive big growth in U.S. housing markets and suggested that they may be at least partially responsible for the recent surge in home prices.”

Excerpt, ‘Foreign buyers pumped up U.S. home prices in the third quarter’

Foreign buyers have become increasingly interested in American real estate in recent years. In fact, according to the National Association of Realtors—which recently surveyed 2,500 foreign homebuyers in America—28 percent of them spent $500,000 or more on a property. With new studies showing that foreign buyers are now reaching around $92 billion per year in U.S. real estate sales, it’s no surprise that the U.S. housing market is booming.

Foreigners and Americans in Canada have been boosting foreign demand for U.S. property, which is behind much of the stunning rise in home prices.

California Dreaming

Foreign buyers pumped $153 billion into U.S. real estate in the year ending March 2017—a record-breaking sum that far outpaced the amount invested during the housing bubble a decade ago, according to new analysis by CoreLogic.

Foreign buyers are helping to grow the U.S. real estate market – particularly in domestic cities that were hit hard by the recession, according to new research from the Urban Institute. “Foreign demand is pushing up prices and pushing them up a lot,” said George Washington University law professor Jonathan Turley, who authored the report . “In some markets, foreign buyers could be driving up prices by as much as 20%.”

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