Weichman Realtors has been noticing that for quite a while, Costa Mesa,CA residential real estate holders – that is, homeowners – haven’t had to work very hard to come up with a description for the U.S.real estate market. ‘Lousy’ certainly came to mind. ‘Bleak’ was a strong contender. ‘Cautiously optimistic,’ at best a distant third.
So July’s Wall Street Journal report came as a quiet reminder that, for serious-minded investors who view our situation from a less-involved perspective, our residential real estate outlook is neither lousy nor bleak. In fact, the combination of lower residential prices and the international currency environment has created a ‘property-buying binge’ by Asians, Canadians, Europeans and Latin Americans – more than 60% of whom pay in cash.
“There’s this international view thatAmericais on sale,” according to one property manager. He should know; he’s an executive whose Chicago-based company buys foreclosed homes and manages them for investors. A year ago, all of his investors were domestic. Now, one in five is foreign.
Whereas before, most foreign residential real estate investors were interested in ‘trophy’ properties to enhance their personal prestige, the new onslaught is coming from buyers who see that they can earn high returns by buying here, renting, then reselling in the future when the market rebounds. It seems that in many countries, a residential real estate downturn is expected, but has yet to occur. In their estimation, ours is already history.
It looks like “a gift,” according to one developer, who judges that an oceanfront condominium inRio de Janeirosells a level 50% higher than an equivalent property inMiami. International or domestic, investment money is always drawn to bargains — but when bargain basement prices are combined with the perceived safety represented by U.S. residential real estate, the lure is apparently irresistible.
“FOREIGNERS SNAP UP PROPERTIES IN THE U.S.” was Nick Timiraos’ headline, with a caption that read, “To many Americans, plowing money into real estate has never looked like such a risky venture. But to many foreigners, U.S. housing has never looked like a smarter investment.”
Thanks, Nick, for giving us some outside perspective; I guess we can adopt the ‘cautiously optimistic’ view with a lot more confidence. If you have been waiting on the sidelines to make your own local residential real estate investment, I hope you will give Weichman Realtors a call when you decide that now is the time. We’re standing by to help you find the property you’re looking for!
Weichman Associates Realtors is a full service real estate agency located in the heart of Costa Mesa offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s Weichman’s mission to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. Weichman Associates Realtors was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, Weichman Realtors has grown to a full staff of 20 serving over 300 clients a year.
Weichman Realtors is not limited to serving just its clients; it is also committed to serving the community. Not only has Weichman donated hundreds of hours to many area charities, they have also received the prestige of being named one of the top real estate companies inCosta Mesa.
If you’re interested in buying or selling in OrangeCounty, turn to the experts. Turn to Weichman Realtors and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact Weichman Realtors today at 714-444-4663 or email us at info@WeichmanRealtors.com.