US home purchases overseas have been declining for the fourth year in a row as the Covid-19 pandemic drastically curtailed international travel.
For the year ended in March, foreigners bought $ 54.4 billion worth of residential properties in the United States, down 27% from the previous year, according to a report released Monday by the National Association of Realtors. This is the lowest level on record since the start of NAR data collection in 2011.
Domestic demand for home purchase was so strong that the decline in sales to foreign buyers did not negatively impact the market as a whole, said Lawrence Yoon, chief economist at NAR. Secondary home sales up in 2020 highest level since 2006 and they are expected to grow again this year.
“The downturn in our international business has been fully offset by the unprecedented domestic demand we have seen,” said Brent Leatwood, a Sarasota, Florida-based real estate broker.
Mr. Yun said he expects foreign purchases to increase next year as international travel recovers. This could mean even more competition for local buyers who are already competing for a limited number of homes on the market.