Foreign Buyers Help Stop Home Foreclosure Rush
The past few months has seen a darkening in the economic outlook for the US. In addition to having a housing crisis, it now seems that the country is experiencing a recession. The strength of the dollar has fallen and many consumers are wondering if there is any relief to be seen in the near future. In a quirky turn, these problems may provide incentive for foreign investors to encourage the housing market. These foreign investors may help stop foreclosures around the country.
One of the may reasons homeowners are finding it hard to sell their houses is the fact that many prospective purchasers currently cannot afford the high prices or they fail to qualify for a mortgage. In these cases, would-be buyers have had few options but to carry on renting and wait for the housing market to stabilize before going trying to buy a home. Some home sellers are finding qualified interested buyers at a suprising source. In today's market, homesellers are just as likely to discover eager purchasers from overseas as they are from down the street.
Experts speculate that investment from Europeans is likely to increase in the coming months. Many speculate that foreign investors have recognized the value in buying homes in the U.S. Prices have declined, making them far more attractive. In fact, in some cases, foreign buyers could be poised to replace the niche that first-time home buyers held before they were squeezed out of the market as a result of the recent real estate crash.
If this trend continues, it could very well provide some relief for homeowners who either need to upgrade to larger homes or who need to get out of homes they can no longer afford.
Real estate brokers are indicating that interest from foreign investors is on the rise. Brokers are reporting in increase of as much as five times the inquiries received just one year ago.
A foreign buyer who invests in a home today would need far less money in terms of euros to make a substantial down payment on a home as a result of the weakening dollar. In fact, foreign buyers today could make what is essentially a $50,000 down payment for little more than 34,000 euros today. A year ago that same buyer would have needed nearly 38,000 euros in order to offer the same amount for a down payment. Quite simply, foreign buyers are able to buy homes in the U.S. for less of an investment than American buyers.
The good exchange rate has definitely provided help in increased spending power in many areas. In certain areas, like Chicago and New York, the demand has noticeably increased. In some cases, the demand has incresed so much that it is actually starting to outpace supply. Florida and California are proving to be popular with foreign investors. The latter two markets, which have been the hardest hit by the recent crash, are embracing the foreclosure relief with open arms. Florida, specifically, is still limping along because of the condo market crash.
Agents and sellers have attached themselves to the idea that that best place to look for interested and qualified buyers is overseas. As a result, many properties are now being specifically targeted at foreign buyers. High-end luxury homes that have been languishing on the market for months are some of the first to be offered to foreign buyers.
The Internet has proven to be a successful marketing tool in the past and today agents and sellers have discovered it is often the easiest way to reach foreign buyers. Compared to other advertising mediums it is often far less expensive and allows them to reach a broader audience. When marketing properties toward foreign buyers, this can be particularly important.
Foreign buyers may not be the complete salvation that homeowners and real estate agents need to fully recover from the housing crash, however, they are are definitely offering a bit of welcome relief in many markets and for many homeowners looking to stop mortgage foreclosure.
Rid yourself of the worry about who is going to own your home. Arm yourself with the knowledge to avoid the foreclosure of your home. Foreclosure Help
Published August 7th, 2008
Filed in Real Estate
