Between April 2020 and March 2021, foreign investors purchased 31% fewer properties than the previous 12 months. The total sales volume was down 27%. In a way, this should be expected, since pandemic lockdowns made transactions more difficult. But it comes at the same time that domestic competition was, and still is, heavy. Competition shouldn’t be a huge issue for foreign investors, since they’re usually already wealthy and intending to pay cash.
That said, restrictions are still loosening in other countries, and they’re in a volatile place even in the US. It’s likely that foreign investment simply needs a bit of time to settle back into place. Though there was a drop of over 50% in dollar volume in China, Canada, and Mexico, they’re still all among the top investors in the US, along with India and the UK. This means it was probably a temporary drop-off due to adverse conditions, not a radical shift in general sentiment towards the US.