(PRWEB UK) 8 September 2017
Following a substantial rise in foreign investment in U.S. real estate in H1 2017, data from leading international payment services provider Covercy has shown a marked decrease in overseas property buyers since the start of July.
The U.S. real estate market remains one of the most attractive locations for international buyers, but the latest property price boom has deterred many foreign investors this summer.
Gidon Jablonka, Covercy CMO says: “Some say the slowdown is related to the summer vacation period. However, I believe the explanation for June’s slowdown is the recent residential house price increase.
“Weaker global economic growth, political uncertainty and financial market turbulence have also played their part, but the appeal of the U.S. remains so strong that wealthy overseas buyers will ultimately adjust to the new reality and dig deeper to own property in the country,” he added.
Some 75 million U.S. homes rose in value by an average of $17,070 in June 2017.The average international currency transfer in Q2 2017 was 24% higher than in Q1, rising from 34k to 42K per transaction. The first two months of Q3 have already shown a decline, but the dip is probably temporary, with rates likely to bounce back in September.
The slowdown in foreign property investments seems to be affecting only the U.S. Western European investment transfers, on the other hand, doubled from $25K in Q1 2017 to $50K in Q2, with a Q3 average of around $45K thus far.
Despite the slowdown in foreign property investments this summer, the medium-term outlook seems bright. August saw a slight correction, with an increase in transfers. The figure was 10% lower than that seen in May, but 13% higher than the average for total investors in June and July, putting a positive spin on what has been a negative situation for the U.S. real estate sector this summer.
Covercy provides a cross border payment solution for investors, businesses and individuals. Its fast, efficient, and secure service powers overseas transactions at a fraction of the cost of traditional methods, thanks to a robust and user-friendly platform which speeds up communications and streamlines payments, saving clients’ time and maximising their profits.