According to the National Association of Realtors, demand from foreign buyers has weakened despite earlier predictions that foreign investors would use the U.S. as a safe haven during global economic upheaval. Wall Street Journal staffer Laura Kusisto reports on foreign investors backing out because of price increases in their preferred cities like San Francisco and New York.
For the Chinese, the top foreign buyer, the median price of existing U.S. home sales had increased 14% in January compared to one year prior. However, it is still too early to tell if Chinese demand will fall as much as other countries:
Chinese economic growth may have slowed, but the country is still reporting growth of more than 6%. And while many Chinese residents have lost money in the stock market, giving them less to spend, that could also prompt them to try to diversify their investments. (Subscription required)