BrokerageIndustry News

As home prices rise, foreign interest in U.S. real estate flags

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

A decline in the international share of overall house hunters in the second quarter indicates that rising U.S. home prices may be putting off foreign buyers, according to a report from real estate search and marketing site Trulia. The report is based on all home searches on Trulia between April 1, 2012 to June 30, 2012. The share of foreign searches on Trulia fell nearly 10 percent year over year in the second quarter, with the fastest appreciating markets seeing the biggest declines in foreign interest, according to Trulia. After years of dropping home prices nationwide, many markets seem to have found their footing. Nationally, home prices were up only slightly in June -- 0.3 percent on an annual basis."Foreigners attracted to real estate bargains get turned off when prices increase," said Jed Kolko, Trulia’s chief economist, in a statement. "Investors want to buy when prices are at their bottom, but they’ll start to lose interest when prices rise 15 percent, as...