Will U.S. Dollar Uptrend Slow Foreign Real Estate Investment In The US?
Chris Vermeulen | Jul 19, 2022 03:48AM ET
The US Dollar uptrend has been going on since Jan. 6, 2021:
- US Dollar is at a 14-year high
- 2020-2022 US Presidential Cycle: USD appreciated +18.33% to date
- 2016-2020 US. Presidential Cycle: USD depreciated – 12.80%
- 2012-2016 US Presidential Cycle: USD appreciated +37.20%
International investors interested in buying US 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.
DR Horton (NYSE:DHI), America’s largest homebuilder as of Jan. 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.
US DOLLAR +18.33%
- UUP +18.33% US Dollar ETF
- FXC -3.14% Canadian dollar ETF; Spread CAD to the USD 21.47%
- FXA -10.73% Australian dollar ETF; Spread AUD to the USD 29.06%
- FXF -11.06% Swiss franc ETF; Spread CHF to the USD 29.39%
- FXB -12.33% British pound ETF; Spread GBP to the USD 30.66%
- FXE -18.42% Eurodollar ETF; Spread EUD to the USD 36.75%
- FXY -25.86% Japanese yen ETF; Spread JPY to the USD 44.18%
INVESCO DB USD INDEX BULLISH FUND ETF • UUP • ARCA • DAILY
REDFIN -92.80%
- February 2021 to present
- -$91.84 per share or -92.80%
- 68 weeks down; 476 days down
REDFIN CORPORATION • RDFN • NASDAQ • WEEKLY
DR HORTON -46.44%
- December 2021 to present
- -$51.42 per share or -46.44%
- 26 weeks down; 182 days down
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DR HORTON • DHI • NYSE • WEEKLY
COPPER -38.09%
- March 2022 to present
- -$1.91 per pound or -38.09%
- 18 weeks down; 126 days down
CFDS ON COPPER (US$/LB) • XCUUSD • OANDA • WEEKLY
LUMBER -70.24%
- May 2021 to present
- -$1218.50 per board foot or -70.24%
- 57 weeks down; 399 days down
RANDOM LENGTH LUMBER FUTURES (US$/BOARD FOOT) • LBS1 • CME • WEEKLY
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