Overseas Buyers Snapping Up Homes in USA

The dropping dollar has shifted some interest to overseas buyers, who are finding US real estate a bargain.

"When you consider how the U.S. dollar has slid in value compared to other international currencies, you begin to understand why investors are purchasing real estate in this country," said Mitch Creekmore, senior vice president of Stewart Title Co. "Real estate prices here are a bargain compared to many areas in western Europe and Asia."

The currency environment probably played a major role in the proportion of foreign buyers who paid cash for their homes. The cash group (28 percent) was much greater than that of the general U.S. home buyer population (8 percent). In addition, international buyers who can afford a home abroad often are from wealthier households with higher monthly incomes and cash reserves. Also, the tax benefits of mortgage-interest deductions may not apply -- depending on the buyer's home country's tax code -- which lowers the incentive to take out a mortgage. [source article]

The Internet has undoubtedly been a boon for overseas buyers seeking information on homes in the States. Is your real estate agent able to do marketing that reaches these potential buyers? You might want to ask.

Apprecation or Slump? Depends on Where You Live

For the first time in nearly thirteen years, home prices in the US experienced a quarterly decline, according to a new report released by the Office of Federal Housing Enterprise Oversight (OFHEO).

While select markets still maintain robust rates of appreciation, our newest data show price weakening in a very significant portion of the country,” said Lockhart. “Indeed, in the third quarter, more than 20 states experienced price declines and, in some cases, those declines are substantial.”

Many of the cities and states experiencing the sharpest declines this quarter were the same cities and states experiencing the sharpest increases just a couple of years ago, suggesting some price corrections in those markets.

Of course, national averages don't tell the whole story. Washington State was one of the exceptions, with the fifth-highest rate of appreciation (7%) during the quarter. And a particular hot spot is Wenatchee, which for the third consecutive quarter had the highest four-quarter appreciation among the 287 Metropolitan Statistical Areas on OFHEO’s list of “ranked” cities. Annual appreciation in Wenatchee was 15.7 percent.

You can download a PDF of the complete OFHEO report here.

Cheering Gloomy Buyers

Feeling iffy about spending money on a new home in today's market? Some Tacoma firms are looking to lift you out of your spending funk.

The News Tribune reports that the Master Builders Association of Pierce County and the Washington Realtors are rolling out ad campaigns touting the upside of buying in the Tacoma area. And buying now, not later.

Pierce County's median home price in August climbed 4.4 percent compared with the same month in 2006, though the county had 2,702 new-construction houses and condos listed for sale compared with 1,947 the same month in 2006, according to the Northwest Multiple Listing Service.

Read the story.