International homebuyer interest in the US will decline in the third quarter of 2025

“These factors have led to some moderation in foreign demand for U.S. homes compared to last year. Still, interest remains above pre-pandemic levels, reflecting the continued involvement of global homebuyers in key U.S. markets.”

Canadian stocks fall as trade tensions rise

Canada remained the largest source of international searches, but saw its share fall to 32.1%, down from 36.6% in the third quarter of 2024, the report said.

The decline followed the U.S. imposition of tariffs on Canadian goods, which may have dampened interest in housing due to currency volatility and economic uncertainty.

Canadian shoppers continued to dominate traffic in several metropolitan areas, including Cape Coral, Florida (61.4%); Phoenix (61%); and North Port, Florida (58.8%).

Other major sources of international demand were the United Kingdom (6.5%), Mexico (5.6%), Germany (4.1%) and Australia (3.4%).

Demand for luxury items decreases as prices fall

International buyers continued to view more expensive properties more often than domestic buyers, although the price gap narrowed.

The average home viewed by an international user was 29.8% more expensive than the home viewed by US shoppers – down from an average difference of 34.2% between 2022 and 2024.

The change reflects a steeper decline in the average price for international buyers (-5.2%) compared to domestic buyers (-1.7%), indicating weaker demand for luxury homes amid global economic pressures and currency fluctuations, Realtor.com explains.

Large price gaps persisted in cities such as Los Angeles (173.6%), New York (49.2%), San Francisco (33.4%), and Boston (23.8%).

Austin (18.6%) continued to attract international professionals and investors due to its relative affordability and strong job market.

Miami tops the list for international traffic

Miami remained the top U.S. destination for foreign shoppers, accounting for 8.4% of all international views.

It was followed by New York (5.6%), Los Angeles (4.8%), Orlando (2.7%) and Dallas (2.7%).

Economists at Realtor.com say future immigration and visa policies will likely influence international housing trends.

“Proposed ‘gold’ and ‘platinum visa’ programs could attract more affluent buyers to luxury markets, while restrictions on H-1B visas could depress demand in innovation-driven metros like Austin and San Jose,” said Jiayi Xu, a senior economist at Realtor.com.