Foreign Buyers Losing Interest in U.S. Real Estate?

July 25, 2012

The number of international buyers conducting home searches for U.S. properties has fallen nearly 10 percent in the last year, Trulia reports in its International House Hunter Report, which covers the period of April 1 to June 30.

The report suggests that rising U.S. asking prices are cooling international interest. The metro areas where prices have risen the fastest are where foreign-based housing searches have dropped the most too, according to Trulia’s report. 

”Foreigners attracted to real estate bargains get turned off when prices increase,” says Jed Kolko, Trulia’s chief economist. “Investors want to buy when prices are at their bottom, but they’ll start to lose interest when prices rise 15 percent, as they have in Miami and Phoenix. Demand by people looking to scoop up bargains can dry up quickly when prices rise.”

Top Searched Metros by International Home Shoppers

Still, international house hunters who are continuing their search for U.S. property are showing the strongest preferences for areas in the United States that offer warm winters and show the largest price declines from the housing crisis.

The following are the top U.S. markets with the highest share of searches by international house hunters during the second quarter of 2012, according to Trulia.

  1. Miami: 15.7%
  2. Los Angeles: 13.7%
  3. Fort Lauderdale, Fla.: 12.9%
  4. Lakeland-Winter Haven, Fla.: 10.9%
  5. Orlando, Fla.: 10.8%

 

Source: Trulia

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