Red hot US property market to get a further boost when lifting of travel restrictions allows foreign buyers back, analysts say
- Low interest rates and limited supply have pushed average home prices in the US to record highs in recent months, with demand driven by local buyers
- Once international travel picks up after the pandemic, a surge in demand is expected as foreign buyers rush back into the market
Even in the absence of demand from overseas, low interest rates and a limited supply have pushed up average home prices in the US to record highs in recent months, according to various indices.
Meanwhile, the typical value of homes in the US rose 15 per cent on the year to US$293,349 in June, according to property site Zillow.
Local demand has been the key driver of home prices as Americans migrate from big cities and seek bigger spaces to accommodate their new work-from-home lifestyles, according to property consultancy Savills.
“Foreign buyers have largely been absent from the property landscape, [though] there are opportunistic foreigners buying trophy assets and homes of provenance,” said Erin Boisson Aries, a broker at Christie’s International Real Estate in New York. “The real surge in pricing we expect in the next year as foreign travel ticks back up and many return to New York City and other urban centres.”