International buyers are increasingly shying away from the U.S. housing market.

• The National Association of Realtors reports that international buyers purchased 54,300 existing homes from April 2023 to March 2024, which is a 36% decrease from the previous year.
• Since 2009, the lowest level of international investment has been recorded.
• In the housing market, foreign buyers are confronted with high prices, limited supply, and a robust U.S. dollar.

International buyers of U.S. residential real estate are facing the same challenges as domestic buyers, including high prices and limited supply, but they are also confronted with a strong U.S. dollar, which makes the properties even more expensive for them. Consequently, international buyers are withdrawing from the market.

Since April of last year to March of this year, the National Association of Realtors reports that they purchased 54,300 existing homes, a 36% decrease from the previous year. This is the lowest level of international investment since the NAR began tracking it in 2009.

The year-over-year decrease in dollar volume was 21%, amounting to $42 billion.

The NAR recorded the highest ever purchase prices for foreign buyers, with both the average ($780,300) and median ($475,000) prices.

According to the NAR, the top volume buyers were from Canada, China, Mexico, and India. These buyers purchased the most properties in Florida, Texas, California, and Arizona. Chinese buyers spent the most money, purchasing higher priced homes.

The data in the report does not reflect the significant presence of foreign buyers in the new development space, as it only counts sales of existing homes.

"According to Lawrence Yun, chief economist for the NAR, the strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners. Consequently, it's not surprising to see a decrease in U.S. home sales from foreign buyers."

But foreign buyers also face additional hurdles.

"Yuval Golan, CEO of Waltz, stated that the company lacks a credit score, has a unique name, and possesses a different passport. As a result, they must wire money across two countries, which takes time. Additionally, they must deal with foreign currency exchange, unfamiliar title companies, mortgage brokers, and lenders who may not comprehend their credit and income history."

Waltz offers foreign investors a streamlined, distant experience for purchasing U.S. real estate in just 30 days, as stated by Golan.

Golan stated that we assist them in establishing an LLC in their home country and within seconds, we open a U.S. FDIC-insured bank account for them, collect their money locally, and perform foreign currency exchanges.

As a mortgage lender, Waltz is charging rates higher than the market.

According to the NAR, only 1.3% of U.S. home sales annually are made by international buyers, with half of their sales being all-cash, compared to 28% of total existing-home sales.

Despite the increase in supply, prices for the U.S. market remain high.

The upcoming presidential election may cause international buyers to pull back, making it unlikely that sales from foreign buyers will improve unless several economic and political factors improve.