We have seen an influx of foreign buyers scooping up real estate in recent months, the reason for this increase is simple. The falling costs of real estate and the favorable money rate exchange is allowing for this trend to take place.
Foreign buyers who once thought living abroad was a pipe dream are now boarding planes from all around the world to cash in on our less than favorable real estate market. Instead of investing in stocks and bonds, they are using their savings to pick up heavily discounted properties, especially condominiums. Once the market rebounds they hope to sell these properties for a more than generous return on their investments.
Miami appears to be one of the cities seeing this increase, one particular complex is more than 90% owned by foreigners, particularly Europeans and Latin Americans. This isn’t the only state to report this trend; similar stories are being reported from Washington, New
York, Las Vegas, Los Angeles and San Francisco.
The questions remains, will these buyers help our sluggish real estate market quickly rebound? Probably not, but areas like Miami and Washington have stated it has at least helped their markets to stabilize. To put it into perspective foreign buyers still only
represent 7% of today’s totals according to the National Association of Realtors. We still have a ways to go to see our market completely turn around, but this jolt may get us heading in the right direction.
If we can help you with your buying or selling needs please don’t hesitate to call. We look forward to assisting you.
Yours in Success,
The Florida Future Realty Team.