A study from Zillow found that the strength of the U.S. dollar can heavily affect how foreigners shop for U.S. homes.
The U.S. dollar currently buys about 30 percent more Mexican pesos, 25 percent more British pounds, 10 percent more Chinese yuan, and 7 percent more Euros and Canadian dollars than it did at the start of 2015. As the U.S. dollar has strengthened, homes in the U.S. have become more expensive for international shoppers. Buyers from different countries have responded in different ways.
Zillow’s study found that buyers from Europe and the United Kingdom typically continue to shop for the same types of houses regardless of price increases. Buyers from Canada and Mexico tend to drop out of the market as prices increase, leaving only a smaller number of affluent buyers still shopping. And in China, buyers shift to look for less expensive U.S. homes as the dollar strength increases.
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