Foreign Buyers Get More for Their Money

As the U.S. dollar continues to decline, international real estate shoppers are finding themselves in a more favorable position. A new report from Redfin reveals that several global currencies have strengthened relative to the U.S. dollar, effectively giving many international buyers a discount on American homes.

Russian, European, and Japanese Buyers See Major Discounts

One of the most notable examples is the Russian ruble. While U.S. home prices rose around 1% for domestic buyers in the past year, the ruble’s strength led to a 9.6% drop in equivalent costs for Russian buyers.

Other currencies also saw meaningful gains:

• Swiss franc and Swedish kronabuyers would pay about 8% less than they did a year ago.
• Japanese yenholders get a 7.6% discount.
• Euro and British poundusers benefit from a 5.6% and 5.3% price drop, respectively.

According to Chen Zhao, Redfin’s head of economic research, “It’s like getting a discount that domestic buyers can’t access. Their money simply goes further than it did a year ago.”

Not Everyone Wins: Some Currencies Weaken Against the Dollar

While many global currencies have strengthened, some have moved in the opposite direction. Buyers using the Mexican peso are now paying about 5.7% more for U.S. properties compared to a year ago. The Indian rupee has also weakened, making home purchases 4% more expensive for Indian buyers.

This matters, as Mexican nationals represent the third-largest group of foreign buyers in the U.S., according to data from the National Association of Realtors (NAR).

Why Is the Dollar Weakening?

The dollar’s decline over the past six months has been driven by multiple factors. Analysts point to tariff policies and growing U.S. government debt as key contributors. Additionally, speculation surrounding potential Federal Reserve interest rate cuts is fueling further uncertainty.

The Fed is set to meet on July 29–30, and if rates are reduced, the dollar could fall even more in relation to other global currencies.

Foreign Investment on the Rise (But Still Below Historic Levels)

Although the weakening dollar may cause concern for American consumers, it’s creating renewed interest in U.S. real estate among foreign investors. Between April 2024 and March 2025, international buyers purchased 78,100 U.S. homes, a significant increase from the 54,300 homes purchased during the same timeframe the previous year.

Still, these numbers are far below the all-time high of 284,500 foreign purchases in 2017. So, while recent activity has picked up, international investment in U.S. housing remains at historically low levels.

Foreign Buyers Spend More and Pay in Cash

According to the NAR report, foreign buyers spent $56 billion on U.S. homes in the one-year period analyzed only 2.5% of the total $2.2 trillion in existing-home sales. Despite their small share, they made an outsized impact.

The median home price for international buyers was $494,400, far above the $408,500 median price for all U.S. existing homes. Additionally, 47% of foreign buyers paid all cash, compared to just 28% of all buyers.

Top Countries Buying U.S. Homes

The top countries whose citizens purchased U.S. properties were:

1. China(15%)
2. Canada(14%)
3. Mexico(8%)

Interestingly, while many currencies gained value, the Chinese yuan stayed relatively flat, meaning Chinese buyers didn’t see the same kind of currency based discounts.

Looking Ahead: Will International Activity Continue to Climb?

With interest rate cuts on the horizon and the dollar continuing to weaken, many experts believe the U.S. housing market could see continued or even accelerated interest from global investors.

“Buyers from abroad are seeing a rare opportunity,” Zhao said. “They’re not just investing in homes they’re investing in value that goes further than before.”

Any readers with questions or that need real estate help can contact LIST WITH ELIZABETH – Elizabeth Ann Kline at 703-829-5478.