Economist sees dip in the number of foreign buyers

July 26, 2012 02:00PM

Trulia’s chief economist, in a Forbes column, wrote that the number of foreign buyers who are searching for U.S. homes have dipped 10 percent year-over-year. “Foreign searches are becoming a smaller slice of a growing pie,” he wrote, noting that domestic price increases, as well as interest falling off from would-be buyers in the crisis countries in the Eurozone, are deterring the site’s foreign visitors.

According to Jed Kolko, whose company has reportedly filed for an IPO, foreigners are mainly looking to buy in the New York, Los Angeles and Miami markets. Los Angeles is popular among Russians and Japanese, New York is the number one destination for Chinese and Italians while Brazilians have their eyes on Miami.

Cost is playing a big role in the trend, Kolko said. Asking prices nationally increased 0.3 percent year-over-year nationally in June. In Miami, asking prices were up 15 percent year-over-year. [Forbes]