Will U.S. dollar uptrend slow foreign real estate investment in the US?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The U.S. Dollar uptrend has been going on since January 6th, 2021:
International investors interested in buying U.S. real estate are having issues as converting their country's currency into the USD significantly reduces the amount of real estate they can purchase.
According to an article by Patrick Clark of Bloomberg on July 11, 2022, "Across the country, nearly 60,000 homes sales fell through according to an analysis by Redfin Corp." "That was equal to 15% of transactions that went into a contract that month, the highest share of cancellations since April 2020, when early Covid lockdowns froze the housing market."
Redfin NASDAQ RDFN, which offers a full-service real estate brokerage discounted service, has suffered a staggering loss of -92.80% in its stock price after putting in its February 2021 high.
D.R. Horton NYSE DHI, America's largest homebuilder as of January 20, 2022, responsible for 71,292 home closings totaling $21.5 billion in revenue for 2021, has dropped -46.44% from its high.
Other housing-related commodity markets such as copper -38.09% and lumber -70.24% are also signaling a recession.
U.S. DOLLAR +18.33%
INVESCO DB USD INDEX BULLISH FUND ETF • UUP • ARCA • DAILY
REDFIN CORPORATION • RDFN • NASDAQ • WEEKLY
DR HORTON -46.44%
D.R. HORTON INC. • DHI • NYSE • WEEKLY
CFDS ON COPPER (US$/LB) • XCUUSD • OANDA • WEEKLY
RANDOM LENGTH LUMBER FUTURES (US$/BOARD FOOT) • LBS1 • CME • WEEKLY
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