As ceasefire negotiations stall and Russian attacks on Ukraine rage, uncertainty about the impact of geopolitical fallout on economic markets globally continues to loom large. one of the newspapers.
However, experts from the National Association of REALTORS® (NAR) are not convinced that the war will deal a serious blow to the American real estate market, according to data from the organization’s survey of transactions by foreign buyers within of its members, which counted approximately 5,000 respondents.
- Russia accounted for less than 0.8% of all foreign buyers who purchased residential property in the United States from April 2015 to March 2021.
- The top five destinations for Russian foreign buyers buying property were Florida (29%), Georgia (16%), New York (13%), California (8%) and Illinois (5%).
- The median purchase price among Russian buyers was $325,000.
- The average purchase price among Russian buyers was $652,915, compared to $480,695 among all foreign buyers.
- Since most Russian foreign buyers reside in the United States, 54% purchased the property to use as their primary residence, and only 36% purchased the property for vacation or rental.
- More than half (51%) of purchases by Russian foreign buyers were made entirely in cash, which is more likely for foreign buyers who lived abroad.
- The report notes that less than half (41%) of Russian foreign buyers who bought homes lived abroad while most were already living in the United States as work visa holders, as diplomats and students when they purchased the property. This corresponds to the number of American foreign buyers abroad, according to the report.
While the implications of a continued Russian invasion of Ukraine worry economists watching the global economy, the effects are unlikely to hurt the housing market too much, according to Gay Cororaton, Senior Economist and Research Director on housing and commerce at NAR who is the author of the association’s report of March 7.
“The Russian-Ukrainian tension will probably have little direct impact on the US real estate market. Russian foreign buyers represent less than 1% of purchases by foreign buyers, and foreign buyers represent only 2% of existing home sales,” Cororaton said in an email sent to RISMedia.
She went on to say that lower foreign demand “will ease supply constraints for domestic buyers.”
Given the impact on global oil markets as a result of the war in Ukraine, NAR also anticipates that oil-producing states in the United States – Texas, North Dakota, New Mexico, Oklahoma, Colorado, Alaska and Wyoming – could experience a tailwind. financially as they increase oil production to improve global supply.
Jordan Grice is RISMedia’s Associate Online Editor. Send him your real estate news ideas by e-mail, [email protected].