What's Happening?
Realtor.com has reported a slight decline in international home shopping activity in the U.S. during the third quarter of 2025, with Canadian interest continuing to cool. International views accounted
for 1.5% of U.S. online home search traffic, down from 1.6% a year earlier. The decline in Canadian interest coincides with U.S. tariffs on Canadian goods, suggesting trade tensions and exchange rate volatility may be influencing cross-border housing interest. Despite this, Canada remains the top source of international home shopping traffic to the U.S., with significant interest in Florida and Arizona.
Why It's Important?
The cooling of Canadian interest in U.S. real estate reflects broader global economic uncertainties and policy shifts that are affecting international buyers. The decline in international demand, particularly for luxury homes, could impact the U.S. real estate market, especially in high-demand areas like Miami and Los Angeles. The report highlights the influence of geopolitical and economic factors on real estate trends, with potential implications for property values and market dynamics.
What's Next?
Future international demand for U.S. real estate may be shaped by new immigration and visa policies, which could either attract or deter foreign buyers. Proposed visa programs targeting high-net-worth individuals may boost demand in luxury markets, while restrictions on work visas could affect demand in innovation-driven cities. The evolving global economic landscape will continue to influence international real estate trends.
Beyond the Headlines
The report underscores the complex interplay between global economic conditions, policy decisions, and real estate markets. The potential for policy shifts to drive changes in international demand highlights the need for real estate stakeholders to remain adaptable and responsive to global trends.
