27% decline to $54.4 Billion is lowest level in a decade
Foreign buyers purchased $54.4 billion worth of U.S. existing homes from April 2020 through March 2021, a 27% decrease from the previous 12-month period and the fourth consecutive annual decline in foreign investment in U.S. residential real estate, according to a new report from the National Association of Realtors®. Foreign buyers purchased 107,000 properties, down 31% from the prior year, as the COVID-19 pandemic led to a strong global economic contraction and a decline in international tourist and business arrivals. The dollar and sales volumes are the lowest since 2011, when those figures were $66.4 billion and 210,800 properties, respectively.
NAR's 2021 Profile of International Transactions in U.S. Residential Real Estate surveyed members about transactions with international clients who purchased and sold U.S. residential property from April 2020 through March 2021. Foreign buyers who resided in the U.S. as recent immigrants or who were holding visas that allowed them to live in the U.S. purchased $32.4 billion worth of U.S. existing homes, a 21% decrease from the prior year and representing 60% of the dollar volume of purchases. Foreign buyers who lived abroad purchased $22 billion worth of existing homes, down 33% from the 12 months prior and accounting for 40% of the dollar volume. International buyers accounted for 2.8% of the $5.8 trillion in existing-home sales during that time period. Click here to view the report.
The global housing market has gotten too hot to be sustained, according to Oxford Economics' deep dive into more than 121 years of housing data. Home prices in advanced economies may be about 10% overvalued compared to the long-term, according to new research from Oxford Economics lead economist Adam Slater. This "boom," Slater notes, is one of the biggest since 1900.
The last boom period in 2006 saw home prices 13% to 15% overvalued, based on Oxford's analysis. Students of market history remember what came next - a global financial crisis, fueled by rampant speculation in the global housing market. Such strong price appreciation currently - driven by low interest rates and shifts in the wealth of populations -has Slater concerned about a reversal in prices not too far off into the distance. Click here to view the full article.
Real estate prices are rising at record rates, across the entire planet. Should you be concerned?
Are we heading toward another housing bubble? It's a growing concern due to rising real estate prices around the world, which has experts wondering if another global economic collapse is inevitable.
The numbers show that housing prices in the United States are growing at the fastest rate in nearly three decades, but America is not alone when it comes to skyrocketing housing prices. The average price of a house in the United Kingdom increased by more than 14 percent over the last year, and that level of growth is occurring in housing markets all across the globe, with New Zealand, Sweden, and Canada's housing markets experiencing the largest growth. Continue reading by clicking here.
NVR members, you can view NAR's rental assistance toolkit with resources and talking points related to the CDC's eviction moratorium. Follow this link to learn more.
