You’ve no doubt seen the headlines– $150 million Spelling House sells to British Heiress. This is a high profile example of a developing trend evident in U.S. housing sales, even in moderate price ranges.
While mainstream American media speculates about whether the market has “bottomed out,” foreign buyers are snapping up U.S. houses and commercial buildings across the country. Off shore investors spent approximately $41 billion in U.S. residential real estate last year and the trend continues.
A recent Trulia survey reports investors abroad are focused on America’s “incredible housing values.” They are amazed at the amount of square footage they can get for the price and confident they will profit handsomely as U.S. markets recover. Prices here may be 30-40% off peak values in some areas; the weak dollar provides an additional 20-25% off for European and Japanese buyers. Interest rates are at historic lows, making the U.S. housing market a popular investment for foreign investors.
Which cities are most popular with overseas buyers? A recent Trulia review indicates the top five hot spots are:
1) Los Angeles
2) New York
3) Cape Coral, FL
4) Ft. Lauderdale, FL
5) Las Vegas
The greatest interest has been expressed by buyers from:
- United Kingdom
- Canada
- Australia
International interest is widespread, with Trulia reporting that Brazilians are shopping Miami and Russian and Chinese buyers are house hunting in Chicago.
Foreign investors reportedly demonstrate a “longer term view” of anticipated return on investment. They are willing to buy low, invest their time and ride market values back to the top.
Have you noticed an international investment trend in your region? How might this trend impact sellers in your area?
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