by BLACK ENTERPRISE Editors
August 9, 2025
These patrons could possibly spend lower than they did a yr in the past for a similar home.
Home costs reached a file excessive in June, with month-to-month prices additionally hovering in historic territory. This unprecedented lack of affordability has stalled the housing market and prompted a shift in energy in direction of homebuyersas sellers battle to dump their listings. A slower market provides international patrons — a lot of whom pay in money — extra room to take benefit. And due to a weakening U.S. greenback, these patrons could possibly spend lower than they did a yr in the past for a similar home. In some instances, it’s the equal of a ten% low cost — whilst house costs climb.
Among the many nations Redfin analyzed, Russia led the cost when it comes to currency-related financial savings, adopted by Switzerland and Sweden.
So what’s behind this shift? The place can international patrons reap probably the most advantages? This text from Redfin Actual Property explains all of it.
Why has the U.S. greenback dropped in worth?
The U.S. greenback has had its worst begin to a yr since 1973. It has dropped greater than 10% up to now six months when put next with currencies from the nation’s main buying and selling companions.
Donald Trump’s commerce proposals and debt-increasing laws, together with cussed inflation and rates of interest, have solid doubt on the U.S. as the middle of the worldwide monetary system. Consequently, analysts have been more and more fearful a couple of shift away from the U.S. greenback and belongings extra broadly, which might have profound results on the housing market.
What does a weaker greenback imply for the housing market?
When the greenback falls, international cash can go additional, which provides international patrons extra buying energy. For instance, whereas U.S. house costs rose 1% yr over yr in June, the equal worth fell 9.6% in Russian rubles.
So, despite the fact that the median U.S. house worth reached an all-time excessive of $447,000 in June, patrons from many nations are successfully paying lower than they did a yr in the past. Money patrons see the most important benefit, whereas these taking over a mortgage may see much less profit – particularly when factoring within the larger rates of interest international patrons can face.
Who’s saving probably the most?
Based on Redfin’s evaluation, patrons from seven nations are seeing financial savings, with Russia main the way in which.
Redfin Actual Property
Previous to this shift, international patrons bought $56 billion price of U.S. properties from April 2024 to March 2025. Whereas nonetheless under the peaks of the 2010s, that’s a 44% improve from the prior yr and a transparent signal of renewed curiosity in U.S. actual property. Worldwide funding may proceed to climb if currencies acquire extra worth over the greenback
Not each purchaser comes out forward
Consumers from nations the place the native forex has weakened towards the greenback are as a substitute seeing costs rise.
Redfin Actual Property
These nations have among the closest commerce ties to the U.S., with the most important buying and selling associate, Mexico, taking the most important hit. This checklist additionally represents the highest 4 nations the place America’s international homebuyers originate from.
Reductions are highest in cities the place costs are dropping
The international forex benefit is even stronger in markets the place house costs are falling. Among the many 100 largest metros, these 5 noticed the most important year-over-year worth drops in June, which correlate to probably the most financial savings.
Redfin Actual Property
Worldwide homebuyers are flocking to the Sunshine State, persevering with a years-long pattern of preferring Florida over the remainder of the nation. Current worth drops following the state’s pandemic-era growth may create extra financial savings for international patrons within the coming months, too.
What’s subsequent for the housing market?
Within the brief time period, home costs will doubtless proceed to rise in most areas of the nation, albeit extra slowly than in recent times. When paired with elevated mortgage charges, patrons should take care of an additional extended interval of unaffordability.
Nevertheless, aid may very well be in sight. As stock continues to pile up from sellers who’re unable to discover a purchaser, patrons could have extra choices to select from. Redfin predicts that this shift in provide and demand will push home costs down by the tip of the yr. For international patrons, this is able to be much more favorable than as we speak. If the greenback stays weak, world demand for U.S. actual property may proceed to develop.
Methodology
Based on a Redfin evaluation of change charges for a choice of main foreign exchange towards the U.S. greenback. The evaluation converts the median U.S. house worth into the equal worth in foreign exchange utilizing month-to-month common change charges. All knowledge as of June 2025.
This story was produced by Redfin Actual Property and reviewed and distributed by Stacker.
