With Donald Trump’s executive orders on immigration having slammed the door on many legal entrants, not to mention the daily news stories about overzealous border officials interrogating upright U.S. citizens whose names they don’t like, it was only a matter of time before the real estate market felt the impact.
These aren’t just immigrants from the countries blocked by Trump’s executive order, or ones who’ve been told they can’t live in the United States.
No, these are immigrants from around the world who are, as a Bay Area agent told the San Francisco Business Times, “nervous about spending that much money and maybe not staying here.”
An agent working on the Eastside in the Seattle area (where Microsoft and other tech companies are located) told the Seattle Times. “I understand the fear. I can’t tell someone, ‘Oh, don’t worry, you’ll get your visa renewed.’ Who knows? Things could change.”
(And just for the record, an immigration attorney could not, at this point, give the person any more solid reassurance. Trump has already used executive orders to fashion unprecedented sorts of change.)
Some agents say their clients worry that their country will be next on the list for an outright ban.
Will the U.S. real estate market feel the loss of these foreign buyers? Time will tell, but given that non-citizens typically invest around $100 billion per year in U.S. homes, according to Barron’s, this isn’t exactly small change.
And whether you’re a home seller or a home buyer from another country who’s worried about the long term, you might want to read about some of the legal issues involved in a canceled closing in Earnest Money: What Happens When Your Home Purchase Falls Through.