Higher prices sap foreign interest in U.S. real estate

Reuters reports:

Foreign investors, who rapaciously scooped up U.S. real estate during the 2007-2009 recession, are backing away from the same markets they so eagerly jumped into a few years ago.

Real estate brokers say demand from international investors has flagged in locations that have been most attractive to overseas buyers - markets such as San Francisco, Phoenix, Las Vegas and Miami.

Many of those markets are back on solid footing after stumbling during the housing crisis. Property prices have risen, while the dollar - against the Indian rupee in particular, and to a lesser extent the Canadian dollar - has appreciated over the past year, despite hitting a speed bump in recent weeks.

As a result, real estate is no longer the bargain it once was for foreigners.

Demand.