News for UK buyers of Orlando property
Dollar’s plunge coupled with faith in eventual economic recovery helps sales
Foreign investors have long been attracted to U.S. residential real estate,
drawn by the market's stability compared with other countries. But the
dollar's descent in the past six months has made makes homes even cheaper
for foreigners, and prices are showing signs of stability.
International investors bought 154,000 homes and condos in the 12-month
period ending in May, down nearly 10 percent from 170,000 for the same
period a year earlier, the National Association of Realtors reports.
But since June, the dollar has tumbled by 9 to 11 percent against currencies
like the Japanese yen, the European euro and the Canadian dollar. The
Brazilian real has gained 17 percent against the dollar in the past six
months.
Foreign investors often pay cash, or offer down payments of 40 percent or
more, because financing is difficult to get. Nearly half paid cash in the
12-month period ending in May, the Realtors group reports.
Florida leads the country in the amount of international buyers, accounting
for nearly a quarter of foreign purchases. The Sunshine State was followed
by three gateway states with warm climates — California, Texas, and Arizona.
Home prices are down by half from the peak period of late 2006 due
to foreclosure sales and a glut of unsold units. With the dollar
hitting a 15-month low this week against the euro, the bargains are enticing.
Investors are buying single-family homes or condos for two-thirds the cost
three years ago.
Posted: 22 November 2009
Source: MSNBC
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