The following is an excerpt from LAURA KUSISTO | July 6, 2016 | WSJ.com |
Miami condo developers, California realtors and others in the housing industry have hoped recent turmoil in the global economy would boost foreign interest in U.S. real estate. New figures suggest the opposite is likely.
Purchases of U.S. residential real estate by foreigners who aren’t residents of the United States fell by $10 billion in the year ending March to $44 billion, the lowest level since 2013, according to a survey by the National Association of Realtors released Wednesday.
A strong U.S. dollar and weakening economies in Europe, South America and China along with rising U.S. home prices have hurt the purchasing power of foreign buyers. Tighter restrictions by the Chinese government on moving money out of the country also have made it more difficult for people there to buy U.S. homes.
The survey looks at two categories of foreign buyers: recent immigrants and non-residents. Purchases by immigrant foreigners actually rose to $59 billion from $49 billion, according to the trade group. The share of non-resident buyers decreased to 41% from about 50% in previous years.
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