The U.S. housing market is currently witnessing the widest gap in over a decade between sellers and buyers, with 508,715 more home sellers than buyers, according to the latest data from Redfin, a real estate brokerage operating in the U.S. and Canada.
Lance Lambert, Co-Founder and Editor-in-Chief of Residential Club, explained that during the Pandemic Housing Boom, housing demand surged due to record-low interest rates, government stimulus, and the rise of remote work—fueling what he calls “WFH arbitrage.” However, while demand skyrocketed, housing supply couldn't keep pace, leading to a severe inventory crunch and a 40% spike in home prices within just two years.
"A lot has changed since then," Lambert noted. "When mortgage rates shot up in 2022, affordability finally caught up with the inflated prices of the pandemic era. The return-to-office trend also cooled demand, and the housing boom began to fade."
Despite this shift, Chinese buyers appear to be going against the grain.
According to Fox News, foreign investment—particularly from Chinese nationals—has surged since 2024. Chinese buyers now lead all international investors in both spending and transaction volume, purchasing $13.7 billion worth of existing homes, an 83% jump from $7.5 billion the previous year.
Notably, Chinese buyers are also paying more: the average purchase price stands at $1.2 million. Around 36% of these purchases were in California, with another 9% in New York.
Real estate analysts believe the ongoing housing affordability crisis in the U.S. is creating more opportunities for cash-rich overseas investors. High borrowing costs are keeping many American buyers and sellers sidelined.
Mortgage buyer Freddie Mac told Fox that the average rate on a 30-year fixed mortgage is now 6.67%, more than double the 3% rate in late 2021. Meanwhile, home prices continue to climb. The median price for a single-family home reached a record $412,000 in 2024, with prices up 4% year-over-year and nearly 60% higher than in 2019, per the Joint Center for Housing Studies.
“Anyone paying in cash—whether domestic or international—is at a clear advantage right now,” senior economist Joel Berner told the Fox, pointing out that they can bypass the punishing mortgage rates that are deterring traditional buyers.
Incidentally, the Trump administration is reportedly planning to ban Chinese groups from buying farmland in the US, particularly near military bases, out of rising concern that their purchases are undermining national security, according to a report of FT.
Lance Lambert, Co-Founder and Editor-in-Chief of Residential Club, explained that during the Pandemic Housing Boom, housing demand surged due to record-low interest rates, government stimulus, and the rise of remote work—fueling what he calls “WFH arbitrage.” However, while demand skyrocketed, housing supply couldn't keep pace, leading to a severe inventory crunch and a 40% spike in home prices within just two years.
"A lot has changed since then," Lambert noted. "When mortgage rates shot up in 2022, affordability finally caught up with the inflated prices of the pandemic era. The return-to-office trend also cooled demand, and the housing boom began to fade."
Despite this shift, Chinese buyers appear to be going against the grain.
According to Fox News, foreign investment—particularly from Chinese nationals—has surged since 2024. Chinese buyers now lead all international investors in both spending and transaction volume, purchasing $13.7 billion worth of existing homes, an 83% jump from $7.5 billion the previous year.
Notably, Chinese buyers are also paying more: the average purchase price stands at $1.2 million. Around 36% of these purchases were in California, with another 9% in New York.
Real estate analysts believe the ongoing housing affordability crisis in the U.S. is creating more opportunities for cash-rich overseas investors. High borrowing costs are keeping many American buyers and sellers sidelined.
Mortgage buyer Freddie Mac told Fox that the average rate on a 30-year fixed mortgage is now 6.67%, more than double the 3% rate in late 2021. Meanwhile, home prices continue to climb. The median price for a single-family home reached a record $412,000 in 2024, with prices up 4% year-over-year and nearly 60% higher than in 2019, per the Joint Center for Housing Studies.
“Anyone paying in cash—whether domestic or international—is at a clear advantage right now,” senior economist Joel Berner told the Fox, pointing out that they can bypass the punishing mortgage rates that are deterring traditional buyers.
Incidentally, the Trump administration is reportedly planning to ban Chinese groups from buying farmland in the US, particularly near military bases, out of rising concern that their purchases are undermining national security, according to a report of FT.
