Why China Fell Out of Love with New York Property

• The dollar volume of homes purchased by foreigners from April 2018 through March 2019 dropped 36% from the previous year, according to the National Association of Realtors.
  
• Foreigners bought 183,100 properties with a total value of about $77.9 billion, down from 266,800 properties valued at $121 billion a year earlier.
  
• The magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.,? the Realtors? chief economist says.
  

A confluence of many factors ? slower economic growth abroad, tighter capital controls in China, a stronger U.S. dollar and a low inventory of homes for sale ? contributed to the pullback of foreign buyers,? said Lawrence Yun, NAR?s chief economist. ?However, the magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.

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The Chinese may also be souring on U.S. real estate due to the current political climate. Anecdotally, real estate agents in California have seen a pullback in Chinese buyer demand. Southern California had been particularly popular with Chinese parents hoping to send their children to American colleges.

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