Foreign Investors getting all the great real estate deals!
Time for Action, not procrastination
In the midst of the transitioning real estate market,
foreign investors and buyers are reaping the rewards
of declining property prices in the U.S.
As one of the hardest hit sectors during the credit
crisis and resulting Great Recession, real estate has
been one of the best places to park your money since
the recovery began. The number of international buyers
is being viewed as steadily rising in both commercial
and residential. With foreign buyers (not only investors)
stepping up and boosting the market, NOW is the time for
investors to consider this the perfect time to make that
purchase that they may have been putting off.
Driving it home:
The nearing close of Aaron Spelling’s mansion located in
Los Angeles County, California drives this point home.
This property listed by Jeff Hyland of Hilton & Hyland,
a Christie's International Real Estate affiliate and co-listed
with Coldwell Banker affiliate Sally Foster, came in with a
list price of $150 million. The sales price will not be
disclosed until all documents have been registered.
international purchases of residential real estate surged by $16
billion this year, to reach one of the highest amounts in recent
years. For the year ending March 2011, total international
residential sales in the U.S. equaled $82 billion, up from $66
billion from the same period in 2010. Foreign buyers currently
make up about 8% of the total housing market, but that number
continues to grow in the face of a weakening dollar and rising
global incomes. In 2010, international buyers represented
about 7% of the housing market.
International buyers have historically been attracted to the
"high-end" U.S. home market. The average price paid by
foreigners was around $315,000 compared to the overall
U.S. average of $218,000. However, recently more
international buyers are going down-market. Nearly 45% of
international purchases were under $200,000. This price
segment has grown significantly over the years, as many
analysts now attribute the growth to the new burgeoning
middle classes of the world. It's actually become cheaper
to buy a "vacation home" in the United States for many,
rather than purchase one in their own countries.
During 2010, home prices soared nearly 20% in Hong Kong,
17% in Latvia and around 16% in Israel, compared to a 4%
fall both new and existing U.S. homes experienced.
Also when price is viewed from local currencies, most
foreign buyers got a better deal. European buyers saw a
price of U.S. real estate drop by 8%. Chinese flippers saw
an 8.6% discount. The strengthening loonie saw
Canadian buyers receiving a nearly 9.3% price decrease.
All this said, NOW is the time to buy!
Not next month or next year!
NOW!!!!!Find your great deal in the Great Smoky Mountains!
Contact Michele Bryan, Affiliate Broker with
East Tennessee Realty Group
865-898-5408 Direct
www.michelebryan.com
Search the entire MLS:
