Will U.S. Dollar Uptrend Slow Foreign Real Estate Investment In The US?

The 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:), 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:), 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 -38.09% and -70.24% are also signaling a recession.

US DOLLARS +18.33%

• +18.33% USD ETF
• -3.14% ETF; Spread CAD to USD 21.47%
• -10.73% ETF; Spread AUD to USD 29.06%
• -11.06% ETF; Spread CHF to USD 29.39%
• -12.33% ETF; Spread GBP to USD 30.66%
• -18.42% Eurodollar ETF; Spread EUD to USD 36.75%
• -25.86% ETF; Spread JPY to USD 44.18%

INVESCO DB USD INDEX BULLISH FUND ETF • UUP • ARCA • DAILY

INVESCO DB USD INDEX BULLISH FUND ETF Daily Chart

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

Redfin Corporation Weekly Chart

DR HORTON -46.44%

• December 2021 to present
• -$51.42 per share or -46.44%
• 26 weeks down; 182 days down

DR HORTON • DHI • NYSE • WEEKLY

DR Horton Inc. Weekly Chart

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

CFDS On Copper Weekly Chart

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

Random Length Lumber Futures Weekly Chart