Posted on 06/15/2012 5:22:02 PM PDT by DeaconBenjamin
International buyers accounted for $82.5bn of homes sold in the US in the year to March, almost 9% of sales, according to a survey by the National Association of Realtors – a jump of 24% from the previous year.
The National Association of Realtors president, Moe Veissi, said: "Low housing prices, a good inventory condition and increased buying power with today's exchange rates help attract international clients."
Five states accounted for 55% of purchases – Florida, California, Texas, Arizona and New York. Florida was the fastest growing destination, accounting for 26% of foreign sales.
More than half of foreign buyers came from Canada, China, Mexico, India and Britain.
Four in 10 wanted somewhere to live and a similar portion were looking for holiday homes or buying to let.
More than 60% paid in cash, and many chose not to live in the US for more than six months a year for tax reasons.
(Excerpt) Read more at guardian.co.uk ...
many chose not to live in the US for more than six months a year for tax reasons.
They don't love BO that much.
The only thing that does not make sense is the “weak dollar” comment. Weak compared to what currency? Not Euro, pound, yen or yuan, at least since the Eurocrash.
The Loonie.
You better look again.
http://finance.yahoo.com/q/bc?s=UUP&t=1y&l=on&z=l&q=l&c=
I have been looking. The minor pullback in the last week or so is not enough time to start and finish many real estate transactions.
Granted. And the Aussie dollar as well. However, that is not the tenor of the article. Canucks and Aussies buying up our real estate? Not so much, I’d say.
Now, there are many good reasons for Eurotrash and the newly wealthy Chinese to buy homes in the US, but a “weak dollar” isn’t one of them. Since the Euro hit the skids the US is the tallest midget in the room.
By the way, and to your point, the article DID mention Canada!
aussies and sweeds have been buying custom cars because of the exchange rate.
They claim they are getting them dirt cheap!
China...
Working-class are poorly paid but some things are relatively cheap.
Someone I know was a manager at a retail shop making about 3500 yuan a month = $550/mo. BUT their rent is 500 CNY a month.
But their shop was torn down for a redevelopment. The only job they have found so far had a starting offer of 1000 yuan a month.
Now for property which is actually dropping in some places in China for the first time. In Xinyang another friend was able to buy an apartment for their parents in a newly-built development for 640,000 yuan = $100k. It is about 1470 sq ft, and only was with cement walls and nothing finished inside. All the build-out is extra at their personal expense... even the wiring and plumbing.
Here in the Houston area our house on a lot with a big yard etc. = normal but largish at 3500 sq ft = would resell for maybe $200k.
The fellow I know who runs the company I consult for paid 14,000,000 yuan = $2.2M for their 3-story townhouse in a crowded property with NO space outside. About 3000 sq ft.
A stand-alone house on a large lot like ours is, there = maybe $2.5M to $3M USD. 10x or more higher than here.
So people without “big money” or a top job in China have a tough time. But people with money there have sacks of money, and US property is cheap and luxurious space-wise relative to China.
I took one person and their two kids to a Pizza Hut in China for lunch. Four appetizers one pizza and drinks was 450 yuan = $70. We are NOT spending $70 for pizza at Pizza Hut in the US here. Maybe in NYC? I don’t know - but NOT in the normal part of the US.
They took me to breakfast at a popular working class place in their neighborhood. Three of us had breakfast for 24 yuan = $3.80 total. And that was a special treat compared to eating breakfast at home.
Lower class has a tough row to hoe, and their middle-class is too small and also struggles.
But the wealthy and upper class professionals have everything we have here, but at a much higher price. BUT they can afford it.
The lower and middle class here in the US have it head and shoulders above the people in China.
And wealthy people everywhere, have it pretty good.
News Flash? Having money helps. Doesn’t make one happy... but ...
In my area of So.CA, listed homes last maybe 5 weeks, and they’re sold. I have no idea who is buying them, but they don’t last long on the market. Big difference from just a few years ago.
It only takes 78 yen to buy one dollar, which makes the yen quite strong. Indeed, the Bank of Japan spent years and much money intervening in the markets to keep it above 100 yen.
Speaking of which, there's been recent talk of more intervention (and possibly innovative means for the intervention rather than the very successful pile-driver approach that has been used in the past) to drive the yen down:
Hey, we used to do that with foreign countries... visit on the cheap - buy a house for next to nothing. Now we know what it feels like... thanks Obama - thanks Democrats. Thanks for the misery...
Maybe, as money flees Europe to the “safety” of the USD. That will only be temporary as the US collapses under the weight of it`s own debt and then the ones who bought USD will regret their move.
Real Estate in the USA in some places has dropped by 60%.
That`s nothing. There are still 7 Million outstanding foreclosures to come.
I would wait another year or so before buying real estate when foreclosures resume and it gets worse for the USA.
THEN I`ll buy a nice place somewhere in Arizona/Nevada for pennies on the USD :-)
Your post is an excellent example of why I think there are many good reasons for foreigners to buy US homes.....but the exchange rate isn’t as big a factor as the article suggests.
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