NAR: Foreign Buyers Are Pulling Back From US Real Estate
Over the last few years, a string of foreign buyers from countries like China, Russia, Canada and Brazil have pumped millions into US real estate. Now, it looks like the influx of foreign cash is dwindling, the National Association of Realtors says. A strong dollar is driving the cost of real estate in key markets like NYC, Miami and LA—all cities with big concentrations of foreign capital.
Over the past year, US median prices in the US have risen 67% for Brazilian buyers, 27% for Canadians and 14% for Chinese buyers, the Wall Street Journal reports.
Related Cos CEO Jeff Blau—who raised $600M through the EB-5 program—expressed that sentiment back in January, saying Chinese real estate investments in the US is drying up. “We should be looking at other places for capital over the next couple of years,” he said.
There is some good news for Jeff, and other developers, eyeing EB-5 funding. Chinese demand is expected to diminish less than the others. While China has experienced slowing economic growth, its GDP is still strong and expanding at around 6% a year. [WSJ]