Real estate purchases by foreigners in the U.S. are at a minimum. And in Turkey?

A new report from the National Association of Realtors, compiled by Neil Goksu Urgandzioglu, found that foreign purchases of existing homes in the U.S. hit a record low between April 2022 and March 2023.

Foreign purchases of existing homes in the U.S. are at an all-time low.

The Federal Reserve's hike in interest rates last year led to a rise in mortgage rates. High interest rates can usually depress home sales and ultimately prices, but not always. According to the National Association of Realtors, the median price of a detached residential home was falling in 2022, but prices started rising again earlier this year.

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Specialists say foreign buyers tend to purchase U.S. homes in cash to avoid the complexities and liabilities associated with mortgages.

THE TURKEY'S REAL ESTATE MARKET IN THE REVIEWI

Last year, both the number of houses purchased by foreigners and the total volume of commercial real estate sales declined. Purchases fell 14% to 84,600 and total spending fell about 10% to $53.3 billion. The Turkish real estate market is also closely following the decline in foreign buying in the US and falling house prices in the UK. The impact of record high house prices on the long-term prospects of foreign investors is generating interest.