Written by: Samantha Guarderas
Many foreign investors feel more confident investing in places outside of their home country, as a potential safe haven against any turmoil in their homeland. This creates a rush of foreign investors that have contributed to the purchase of American real estate. This has been extremely helpful to the market and assisted the progress of the housing recovery. The top markets that foreign investors seek are in Los Angeles, New York, and Miami. The main attractions to these destinations include favorable weather conditions, major metropolitan population centers, and noticeable price decreases. However, these foreign investors may not be contributing to the housing recovery for much longer.
While these foreigners have continued to invest in U.S. housing, recently with asking prices rising nationally, they are suddenly withdrawing. According to The Huffington Post, “…foreign searches fell by nearly 10 percent in the last year…
becoming a smaller slice of a growing pie.” Areas with falling home prices had originally driven their main interest. So with the current turnaround, these investors are shying away from investing in the market further. While the contribution of these
foreign investors has been great for the housing recovery, we must remember that foreign involvement can be unpredictable and therefore we cannot rely solely on their involvement.
At Eklipse Real Estate, we have a great investment opportunity located in Venice. This 6-unit condo features loft-style layout just steps away from the famous Venice sign. The listing agent is Phillip Braunstein.