The Housing Market Gains Relief From Foreign Buyers
The country's economic news has appeared rather dim over the past several months. In addition to the horror of a housing crisis, the country now also appears to be facing a recession. The weakening of the dollar now has many consumers considering whether there might be some relief on the horizon. Surprisingly enough, it is these very problems that may actually encourage foreign investors to jump in and boost our housing market.
One major factor contributing to the difficulty homeowners face in selling their homes is that many potential buyers are either unable to afford the high prices or they simply do not qualify to obtain mortgage loans. As such, they are left with the limited option of delaying the process of purchasing a home and continuing to rent as they await the stabiolisation of the market. Nevertheless, some homebuyers are uncovering some rather surprising sources of interested buyers. Nowadays, homeowners may be surprised to discover that potential buyers are as likely to be found right next door as they are to hail from abroad.
Experts have projected a likley increase in European investments within the upcoming motnhs. It is speculated among many that foreign investors are now realizing the value of purchasing U.S. homes. The prospect has been made quite attractive for them with the decline in property values. In fact, it is not unreasonable to imagine that foreign buyers will likely replace first-time homebuyers as the crashing real estate market squeezes them out of a niche they once held.
Should this trend continue, homeowners may receive much needed relief to allow them to either get rid of homes that they are now unable to afford or upgrade to even larger homes.
There is no question that inquiries coming from foreign investors have begun to increase. In fact, many brokers now report that the inquiries they currently receive have increased up to five times greater than those received just one year prior.
The weakening dollar makes it far less expensive for Europeans purchasing homes in these times to pay down a substantial amount on any home. In fact, 34,000 would be just about enough for foreign buyers to make a down payment of essentially $50,000. Just one year prior, the same buyer would find himself requiring close to 38,00 euros to make the same down payment.
Spending has certainly increased in certain areas, thanks to the changes in the exchange rate. In places like Chicago and New York, demands have increased so much that they are actually now overcoming supply. Florida and California are also increasing in popularity among foreign incvestors and buyers. These markets have been hit the hardest during this crisis and are now opeing their arms wide to embrace the relief. Florida, however, is still facing particular difficulties recovering from the condo market crash.
Agents and sellers alike have latched on pretty quickly to the concept that the best source for potential buyers is overseas. As such, foreign buyers are now the main target market for many properties owners and brokers. Among the first set of properties to be marketed to foreigners are the high-end luxury houses which once languished on the housing market for months on end.
Even in times past, the internethad proven itself to be quite a valuable and successful marketing tools and today's sellers and real estate agents have discovered that it is quite often the easiest and best means of reaching foreign buyers. In comparison to other advertising media, the internet has the ability to reach a significantly wider audience and is frequently far less expensive. This is particluarly important when targeting foreign buyers.
Though they may not offer the complete salvation for which homeowners and real estate agents need to make a complete recovery from the housing crisis, foreign buyers definitely provide much welcomed and significant relief to many beleaguered markets.