The National Association of Realtors (NAR) rolled out its annual report for the period between April 2023 and March 2024 revealing the United States’ worst international real estate sales figures since the inception of the report in 2009. The country’s slow year in real estate got its biggest boost from the neighboring nation.
As per the report, Canadians account for the largest share of foreign sales representing 13% of the pool of purchases. China, Mexico, and India follow closely behind at 11% each, and then comes Colombia at 4%. However, in terms of dollar value, China has left Canada behind with Chinese transactions clocking in at $7.8 billion, some $1.6 billion ahead of Canada.
Compared to the previous year, the volume of US international sales crashed by over 21% and the value of overall transactions came down by 37%. It’s the lowest the overall sales have been since 1995. The cause of the slump is of course the usual mix of high inflation, high interest rates, and limited inventory.
Despite the discouraging trend in the market, Head of US Sales and Business Development at RBC Bank, Alain Forget is optimistic the market is going to look up soon. He recently said, “With the expectation of lower interest rate trends for the rest of 2024 and 2025, there is greater potential of U.S. mortgage financing in the year ahead. There are also a lot of Canadians who are currently on the sidelines, hoping for a better CAD/USD exchange rate. And if the CAD doesn’t rebound as rates go down, US mortgages may become an even more cost-effective – and attractive – option compared to an all-cash purchase.”
