Brexit may have given a lift to the U.S. housing market by putting downward pressure on mortgage rates. But a study conducted on behalf of Inman suggests it's also had a cooling effect on international interest in U.S. real estate, particularly from two of the largest sources of foreign demand: Britain and Germany. Realtor.com listing views from Britain posted the largest drop in annual traffic growth in July, the month after Brexit. Brazil and Germany were the only other two countries that registered significant decreases that month. Since a disproportionate amount of international traffic to realtor.com comes from wealthy foreigners, the traffic change portends a headwind that would mainly impact U.S. luxury markets, particularly those that are most popular with European buyers, according to Javier Vivas, manager of economic research at realtor.com. The primary reason for the decrease in interest from U.K. residents is that Brexit made U.S. homes more expen...
- Annual growth in realtor.com listing views by British and German users dropped sharply in July, the month after Brexit. And the trend persisted through August.
- The softened demand will mostly impact U.S. luxury markets and second-home hubs.
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