International Buyers Investing in U.S. Housing Market

International Buyers of Real Estate on the Rise
October 20, 2010
Thanks to the low prices that can be found on real estate throughout the United States, many foreign investors are turning their attention away from the U.S. stock market and putting their attention on the housing market instead. In fact, foreign investment in U.S. real estate has virtually skyrocketed recently, with most planning to rent out the properties and then to sell them once the economy turns around.
Given the prices that real estate investors have before them, it is easy to see why the interest has grown. At the Viceroy condos in downtown Miami, for example, units once sold for as high as $670 per square foot. Today, they can be purchased at an average price of $319 per square foot.
“I have never seen such a high concentration of foreign nationals acquiring real estate,” said Peter Zalewski in a recent Yahoo finance article. “Eight percent of the sales in downtown Miami are foreign-based. This is unprecendented.”
Miami isn’t the only market to see an increase in foreign investors, however, as other hot spots have included New York, Washington, Las Vegas, San Francisco, Los Angeles, Seattle and Phoenix. In fact, Phoenix saw more buyers from Canada than from California for the first time recently.
“It’s a positive in a sea of negatives,” said Jonathan Miller, who is the chief executive of Miller Samuel, which is a New York-based real estate consulting firm.
Even better for those with money to invest, the payoff can start immediately. Some, for example, focus solely on purchasing those condos that already have renters. In this way, he is able to immediately walk away each month with a profit after paying association fees and taxes. In short, the weak currency, high unemployment and expansive inventory have made the United States an attractive buyer’s market.
“Never before have all these things come together like this,” said Patrick O’Neill, who is the chief executive officer of the O’Neill Group in Hong Kong. “Unless you want to go to Baghdad, the United States is the best you can get.”
The National Association of Realtors is also reporting an increase in international sales, as 28% of brokers have reported working with at least one international client. This figure is up by 5% when compared to last year. Similarly, 8% of brokers report completing at least one sale with an international client, which is up from 12% in 2009.
“I was going [to] invest in the stock market, but I decided to invest in real estate instead,” said Diego Garcia, who is a native of Mexico City and is on assignment with Pfizer Inc. in New York City.
Of course, there are still risks involved with making this type of purchase, as the housing market is still far from reaching a full recovery. Furthermore, prices are still continuing to fall in many markets, which means a foreign investor could get stuck in a bad situation if needing to make a quick sale. Similarly, if a renter leaves, the investor will be stuck without any cash coming in. Nonetheless, demand from foreign investors continues to grow. In fact, overseas buyers now represent 7% of the total buyer’s market. In response, many U.S. brokerages are now hiring agents who are able to speak foreign languages.
“The international buyer pool is better than we have ever seen it before,” said Phillip White, who is the president of New York-based Sotheby’s International.

Don't be Scared to Buy a Home

Buying a Home Shouldn’t Be Scary






by Nancy Chandler Associates, REALTORS on Tuesday, October 12, 2010 at 3:47pm
As Halloween approaches, you might wonder if this is a good time to consider buying a home in Virginia Beach. Will you be spooked by housing costs and condo fees and real estate jargon that turns you white as a ghost because you don’t understand it. Trust us when we say that bidding on a home for sale needn’t be scary – with the right Realtor to show you all the best “haunts” suited to your family and lifestyle, you can still find a terrific deal for your needs and budget.
One plus to house hunting in October is this gorgeous Fall weather we’re currently enjoying. Here you’ll truly see neighborhoods at their most active. You’ll get a feel for various dynamics – kids at play, weekend warriors tackling their landscapes – and traffic low in the off-season. Especially if you have children, you’ll want to pay attention to school districts and opportunities for extracurricular fun, like proximity to the beach and aquarium and other favorite family spots. Some neighborhood associations may sponsor seasonal gatherings or block-wide yard sales as a sign of solid community. As real estate professionals who know the Norfolk/Virginia Beach areas, we are more than aptly qualified to match the community to your needs.
This year, as you prepare for Halloween and get your kids’ costumes ready, why not do some trick or treating of your own and check out our available listings for homes in Norfolk and Virginia Beach. What we have to offer will definitely keep you cozy through all the holidays.

Hampton Roads Real Estate..Have we finally hit bottom??

Tuesday, October 12, 2010 — Though economists have marked many milestones as the alleged bottom of the housing market, according to Beacon researchers, current home affordability is pointing to the worst being behind us.
Beacon Economics analyzed home affordability and came away feeling optimistic.Beacon Economics founding principal Christopher Thornberg, whose firm advises a variety of business clients, says the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction."While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us," says Beacon Economics Research Manager Jordan G. Levine. "We expect prices to stabilize around current levels and likely be higher in the next 12 months." It's a great time to buy..interest rates are at an all time low and housing prices have bottomed out!! I can help you with all of your real estate needs!