gbrooks@imfpubs.com

Purchases of U.S. residential properties by foreign homebuyers declined significantly over a recent 12-month period due largely to slower global growth, tighter controls on Chinese spending and a low inventory of homes for sale, according to a report from the National Association of Realtors.

The ongoing trade war between China and the U.S. has led to a tightening of Chinese cash flow into the country, significantly affecting, among other things, U.S. home sales to foreign nationals.

Some Chinese buyers use cash, others take out a mortgage. Several lenders have mortgage programs that cater to foreigners.

Chinese purchases of U.S. homes fell 56% to $13.4 billion for the 12-month period ending March 2019, NAR found.

Chinese nationals remained the top foreign buyer group in terms of dollars, followed by the Canadians ($8.0 billion) and Indians ($6.9 billion). For full details, see the new edition of Inside Mortgage Trends, now available online.