Wednesday, October 13, 2010

Foreign Investors Buying Up Property in the U.S.

The real estate market in Tampa, Florida and is seeing an increase in sales to foreign investors, and we aren’t the only city witnessing this spike in foreigners purchasing real estate. Florida and many states across the nation have become target markets for international investors looking for a place to invest their money. Who can blame them? Real estate prices are phenomenal, interest rates are maintaining in the low 4% range, and the strength of foreign currency in relation to the dollar make this a smart investment choice for many.

Interestingly, this swarm of foreign investors could very well be what catapults the real estate market into a long-awaited rebound. As the real estate inventory gets bought up, a natural outgrowth will be housing price stabilization. And that is good news for the real estate market! A reduction in inventory and house price stabilization along with fantastic mortgage rates will continue to spur economic recovery.

SI Real Estate works with many international investors and is well aware of this trend. In a recent article Foreigners Buying Up U.S. Property, Jack H. Levine, chairman of the board of the Miami Association of Realtors recently commented on this as well saying, “Record affordability, a wide selection of properties to choose, and an enviable lifestyle continue to attract both international and U.S. buyers.” Many know that we are definitely in a buyer’s market, but what they may not be aware of is that this is very much an international buyer’s market.