Foreign Aid: Overseas Buyers Help U.S. Real Estate

The storm clouds over the U.S. housing market have begun pelting real estate prices with some mean hail.  American are losing their jobs, can't get cheap 100% financing mortgages and can't unload their investment condos for anything close to what they paid for them.  Folks can't even enjoy blowing bubbles with their kids anymore.  (The sounds of the popping drives them to tears.)

But like a United Nations relief mission, foreign assistance may be on the way.  Economic conditions that make life uneasy for Americans are causing international real estate buyers to look favorably towards the U.S. market for new purchases.

Foreign investors are flush with Euros, Loonies, Riyals (and maybe Krugerrands, I don't know) and other currencies that at near all-time highs against the sinking American dollar.  So even without the recent price drops, U.S. real estate has become more of a bargain for overseas buyers.  International buyers have always been keen on U.S. real estate, and now they can get properties at a foreign-exchange discount.

Added to that, falling home prices and larger surpluses of unsold homes are just icing on the cake.  And some of the areas hardest hit by falling home prices are have traditionally the most attractive to foreign buyers.  Florida in particular, is turning into ground zero for this trend.

This is good news for everything but American pride.  But if you need to unload that investment property in St. Petersburg you really shouldn't care whether or not an eager buyer is wearing a baseball cap or a fez.  As experts in all real estate matters (including apartment rentals and foreign currency conversion)  HotPads.com advises you to take the money.  And invest it in Pounds Sterling.