Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Foreign Buying in US Real Estate Drops By $10 Billion, Significant for Art Market?

July 7, 2016 by Marion Maneker

Miami Skyline

The Wall Street Journal has a story based on a new report from the National Association of Realtors that might give us a few clues about foreign spending in the US art market.

There’s no direct correlation between art and real estate or art and luxury real estate. But the two markets have had a tendency to trade in similar patterns. Anecdotally we know that there is a slowdown in buying in Manhattan and Miami at the very upper end of the range. There’s also been a big pull back in the art market above $10m.

Here the Journal gives a few clues, including the insight that Chinese buyers are again the big payers in the US market. Chinese account for 1/4 of the dollar volume sold to foreign buyers which was $27bn last year:

Purchases of U.S. residential real estate by foreigners who aren’t residents of the United States fell by $10 billion in the year ending March to $44 billion, the lowest level since 2013, according to a survey by the National Association of Realtors released Wednesday.

A strong U.S. dollar and weakening economies in Europe, South America and China along with rising U.S. home prices have hurt the purchasing power of foreign buyers. Tighter restrictions by the Chinese government on moving money out of the country also have made it more difficult for people there to buy U.S. homes. […]

While foreigners make up a tiny share of the U.S. housing market, they are critical to small, lucrative segments of the industry. Miami and Manhattan developers are relying on foreign buyers to help fill a swell of high-priced condos coming to market in the next couple of years. The high-end housing market in San Francisco and southern California also gets a significant boost from foreign purchasers.

Foreign Interest in U.S. Homes Cools (WSJ)

More from Art Market Monitor

  • Stanford Contemporary Art Museum Moves Forward with ArchitectStanford Contemporary Art Museum Moves Forward with Architect
  • De Kooning Foundation Funds a Catalogue RaisonnéDe Kooning Foundation Funds a Catalogue Raisonné
  • Art History Changes with Global CollectionsArt History Changes with Global Collections
  • Who Speaks for the Artist? Estates Aren’t Always VirtuousWho Speaks for the Artist? Estates Aren’t Always Virtuous
  • Australia's Resale Royalty for ArtistsAustralia's Resale Royalty for Artists
  • Japan’s Buyers Return to the Art MarketJapan’s Buyers Return to the Art Market

Filed Under: General

About Marion Maneker

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

Top Posts

  • Keith Haring’s 1989 Retrospect Comes to Sotheby’s London Prints Sale
  • Restituted Van Gogh Portrait from London Collection to Sell at Christie’s
  • Four of Picasso's Women Valued at $28m Come to Christie's from Rose-Walters Collection
  • Norman Rockwell's Not Gay. But Is He a Great Artist?
  • Tony Podesta's Secret Art Buying
  • Christie’s to Sell Its First Fully Digital Work of Art in Test of Emerging Market
  • Roy Lichtenstein’s Top Ten Auction Prices
  • Tracey Emin Neon Lights Up Sotheby's 'Contemporary Showcase' Pop-Up
  • Sotheby's Pulls in a $9m David Hockney for November
  • After Pandemic’s Rapid Change, Sotheby’s Has 8 Predictions for 2021
  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor