With one of the hottest residential home crazes in recent memory, many shopping real estate in America have been caught with the recurring theme: “Sold! Above asking price”. In most cases, before you could even put an offer in, the home you wanted was already in escrow with an over asking price or an all cash offer.
Recently Foreign Buyers have begun to re-enter the US housing market, as housing demands have started to cool off thanks to the Federal Reserve. Assets in America are attractive to people all over the world due to America’s strong capitalist economy & being of course being the reserve currency of the world. Owning a home in America gives foreigners the opportunity of a lifetime, and economists are happy to see the flock of foreign investors back on US Soil.
Injecting growth into the US Economy through Foreign home purchases is a very important part of America’s yearly GDP Growth that not many speak of. With rates increasing, Americans are finding less success getting the funding needed to purchase a home for a low rate. On the other hand, foreigners are excited to strike when the iron is hot on deals even if rates are a bit higher.
More on what was just mentioned, Foreigners simply find value in the American housing market for reasons citizens in the states already benefit from such as tax advantages and a strong economy backbone. With rates up almost 2.5% in the last few months, the current real estate market is being seen as the perfect time by foreigners to compete for on market deals and pick up homes for a little cheaper than asking prices a few months ago.
With international travel also back on track after the pandemic, and the real estate market moving quickly — Look for the foreigners to continue to buy in the states.
This post is based on the opinion of writers at Real Estate Today.