Foreigners Don't Want Your US Home: Sales Drop To 15-Year Lows For International Buyers
Portfolio Pulse from Natan Ponieman
Foreign investment in U.S. homes has dropped to its lowest in 15 years due to high prices and low supply. This trend marks the seventh consecutive yearly decline. The U.S. real estate market is affected by high inflation and rising mortgage rates, which have reduced the supply of homes. Anticipation of a potential Fed rate cut has already caused a slight improvement in mortgage applications. Real estate companies and ETFs focused on the residential sector may see short-term impacts.
July 17, 2024 | 7:00 pm
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NEGATIVE IMPACT
AvalonBay Communities may experience short-term volatility due to the drop in foreign investment and overall market conditions.
The decline in foreign investment and overall market downturn could negatively impact AvalonBay Communities' stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Equity Residential may experience short-term volatility due to the drop in foreign investment in U.S. homes and the overall decline in the real estate market.
The decline in foreign investment and overall market downturn could negatively impact Equity Residential's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Essex Property Trust may face short-term challenges due to reduced foreign investment and a sluggish real estate market.
The reduced foreign investment and overall market conditions could negatively impact Essex Property Trust's performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Invitation Homes may face short-term challenges due to reduced foreign investment and a sluggish real estate market.
The reduced foreign investment and overall market conditions could negatively impact Invitation Homes' performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Mid-America Apartment Communities may see short-term negative impacts due to the decline in foreign investment and overall market conditions.
The decline in foreign investment and overall market downturn could negatively impact Mid-America Apartment Communities' stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares Residential and Multisector Real Estate ETF may see short-term volatility due to the decline in foreign investment and overall market conditions.
The decline in foreign investment and overall market downturn could negatively impact the performance of the iShares Residential and Multisector Real Estate ETF in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Schwab US REIT ETF may face short-term challenges due to reduced foreign investment and a sluggish real estate market.
The reduced foreign investment and overall market conditions could negatively impact the performance of the Schwab US REIT ETF in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Vanguard Real Estate Index Fund ETF may experience short-term volatility due to the drop in foreign investment and overall market conditions.
The decline in foreign investment and overall market downturn could negatively impact the performance of the Vanguard Real Estate Index Fund ETF in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80