Foreign Purchases of American Homes Down 36% as Chinese Buyers Leave Market

There has been a 36% reduction in demand for U.S. homes by foreign buyers. The plunge is due partly to tighter currency controls by the Chinese government but also due to a slump in the housing market.

“A confluence of many factors — slower economic growth abroad, tighter capital controls in China, a stronger U.S. dollar and a low inventory of homes for sale — contributed to the pullback of foreign buyers,” said Lawrence Yun, NAR’s chief economist. “However, the magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.”

The Chinese were still the largest foreign buyers of US homes for the seventh year running. However there was a 56% decline in Chinese home buying in the US in the last 12 months. Although economic factors appear to be playing a part, some are asking if the current political climate between the US and China is also fuelling the decline.

Read More: CNBC