The last several months have seen no good news regarding the economic conditions of the country. The real estate crash has been followed by the recession now. The dollar has weakened considerably. This seems to bring some solace to the market as it could mean potential relief in the form of foreign investors. The very factors that seem to have heralded this downturn may induce foreign investment in the devalued market.
It is becoming increasingly difficult for homeowners to sell their properties as the potential buyers either find them too expensive or cannot arrange for mortgage. Most of these potential buyers prefer to wait this period out and are increasingly turning toward renting homes. They would like to see the market stabilized before making an investment. In this depressive market homeowners are discovering a silver lining. The potential buyer may now come from across the seas.
A substantial increase in European investments is to be expected. Experts are of the opinion that foreign investors might think it worthwhile to invest in the American market as the dollar has become cheaper this year. More over the real estate crash has lowered the prices of houses considerably. It is not too far fetched in these conditions to expect that foreign buyers may soon be replacing first time home buyers, who are anyways feeling the pinch.
This trend would be welcomed by troubled homeowners as it will help them sell their properties and some may also consider upgrading to better homes.
Many brokers have reported that inquiries from foreign buyers have increases substantially. Infact at some places there has been a five fold increase in foreign buyer inquiries as compared to last year.
Foreign investors are concluding that investing in American homes is a viable and profitable option since the fall in dollar prices makes it cheaper to buy a home or any other property. A potential European buyer may find it much cheaper to buy a house now in comparison to last year. The previous year a European investor would have required around 38,000 euros to invest $ 50,000, where as this year he needs only 34,000 euros to do so in today’s market.
The favorable exchange rate has brought considerable activity in certain areas. New York and Chicago are infact seeing a surplus demand from the foreign buyers. California and Florida are turning out to the other popular destinations. These were the worst effected markets and are bound to extend a very boisterous welcome to this much needed relief. Florida though is struggling to recover from the Condo crash.
Both the sellers and agents seem to have sensed that salvation lies across the seas. They are willingly looking for relief towards these foreign investors. In fact they have become the major target group for most of the sellers. The one languishing niche of high end luxury homes seems to have revived with this new overseas interest.
The internet has always been a good medium to reach out to potential buyers. With the renewed interest it has become a major tool in the hands of agents and sellers alike to get in touch with foreign investors. There is no doubt that the internet can reach further than any other form of media is definitely much less expensive when compared. So nothing beats it to reach out to foreign buyers at minimum expenses.
Foreign investment may not be the answer or solution to the hapless condition of today’s housing market. It sure is a welcome relief. It brings with it hope and respite to the much troubled home owners and the real estate market in general.