Canada Leads U.S. Home Purchases Amid Drop in International Sales

International home purchases in the United States saw a significant decline during the 12-month period spanning April 2025 to March 2026, as detailed in the National Association of Realtors' (NAR) "2026 International Transactions in U.S. Residential Real Estate" report. A total of 67,100 existing homes were bought by international clients, representing a 14% decrease from the previous year and the second-lowest level recorded since NAR began tracking this data in 2009.

The total dollar volume of these transactions also fell by 19.1% year-over-year, reaching $45.3 billion. Despite the overall slowdown, Canada surpassed other nations to become the leading country by the number of residential properties purchased in the U.S., accounting for 16% of all foreign acquisitions, equivalent to approximately 10,700 homes. Meanwhile, buyers from China (including mainland China, Hong Kong, and Taiwan) continued to lead in dollar volume, spending $7.6 billion, reflecting a preference for higher-priced properties, with an average purchase price close to $1 million. Mexico secured the second spot by unit count with a 14% share, followed by India at 9% and the United Kingdom at 4%.

The average purchase price for international buyers was $669,500, a 6.9% decrease from the prior year. The median price stood at $465,000, which is notably higher than the $413,600 median price for all existing-home buyers. A significant 48% of foreign buyers made their purchases entirely in cash, a figure substantially higher than the 28% cash purchase rate among all existing-home buyers. The most popular states for international buyers remained Florida (20%), California (19%), and Texas (12%).

Lawrence Yun, NAR's Chief Economist, attributed the decline in foreign homebuyer activity to a mirroring slowdown in international visitors to the United States. High home prices, limited inventory, and elevated borrowing costs were identified as primary factors contributing to the broader housing market slowdown. Furthermore, geopolitical uncertainties, trade policies, and global inflation have also negatively impacted international demand, prompting some overseas buyers to adopt a "wait-and-see" approach to U.S. real estate investments. A survey of real estate agents revealed that the biggest barriers for international clients who ultimately did not buy were the inability to find a suitable property (33%), home prices (28%), and immigration laws (19%).

From a broader economic perspective, a slightly weaker U.S. dollar over the past year, which theoretically boosts foreign purchasing power, did not stimulate increased activity. This suggests that fundamental housing market challenges outweighed any currency-related advantages. Analysts note that the U.S. housing market remains attractive to international buyers, but they are becoming more selective due to current market conditions and economic uncertainties. In the coming period, an increase in housing inventory and potential shifts in interest rates could rekindle foreign buyer interest. However, global economic and political developments are expected to continue playing a decisive role in these trends.