A weak dollar spells opportunity for some foreign buyers
While U.S. buyers saw home prices rise year-over-year, those using other currencies are getting discounts, which could spur foreign purchases.
Key points:
- Based on the U.S. dollar, home prices were up 1% in the past year — but down significantly for buyers using currencies from Russia, Japan and Europe.
- The U.S. dollar has weakened in recent months, with tariff policies and national debt playing a major role.
- Foreign buyer home purchases were higher between April 2024 and March 2025 compared to a year earlier, but low by historical standards, accounting for just 2.5% of sales.
As the U.S. dollar has weakened, some international buyers are getting a nice discount when purchasing homes on American soil.
A new report from Redfin found that several currencies have gained strength relative to the U.S. dollar. The Russian ruble is among the biggest movers: U.S. buyers saw home prices rise around 1% in the past year, but in rubles, the equivalent price fell by 9.6%.
European and Japanese buyers also win out: Other currencies that now have an advantage over the dollar include the Swiss franc and Swedish krona (buyers using those currencies would see an 8% discount compared to a year ago), the Japanese yen (a 7.6% discount), the Euro (5.6%) and the British pound (5.3%).
Some foreign buyers now pay more: A few currencies have weakened against the U.S. dollar, which means buyers using those denominations would be paying more than they would have a year ago. They include the Mexican peso (5.7% more) and the Indian rupee (4% more). Mexican nationals make up the third-highest share of foreign buyers in the U.S., according to NAR.
Why has the dollar lost ground? Tariff policies and U.S. government debt are the primary factors causing the dollar to fall over the past six months, according to NBC News. The U.S. dollar could weaken further compared to other global currencies if the Federal Reserve cuts interest rates — something President Donald Trump continues to push for. The Fed next meets on July 29-30.
Will more non-citizens buy U.S. real estate? While the trend doesn't help those in the U.S., it could bring in more international real estate buyers, according to Chen Zhao, Redfin's head of economic research.
"Their money simply goes further than it did a year ago. It's like getting a discount that domestic buyers can't access," Zhao said.
Foreign purchases up recently, low historically: Home purchases by foreign buyers were up over the past year, according to NAR's latest International Transactions in U.S. Residential Real Estate report, which looked at the period spanning April 2024 and March 2025.
During that time, 78,100 U.S. homes were purchased by foreign buyers, versus 54,300 a year earlier. But compared to a decade ago, international purchases are down significantly. The peak year for foreign purchases was 2017, according to the report, with 284,500 homes bought by non-citizens.
A small share of sales: Although foreign buyers spent $56 billion on U.S. residential purchases during the 1-year period analyzed, that's a drop in the bucket given the size of the market, accounting for just 2.5% of the $2.2 trillion total existing-home sales volume between April 2024 and March 2025.
Notably, foreign buyers spent more per home (a median of $494,400 vs. $408,500 for all U.S. existing homes sold), and nearly half of those buyers — 47% — paid all cash, compared to only 28% of all buyers.
Where are most buyers from? According to NAR's research, the largest number of non-citizen buyers came from China (15%), followed by Canada (14%) and Mexico (8%). The Chinese yuan currency has been flat compared to the U.S. dollar, according to the Redfin report.