Blog

Canadians And Other Foreign Investors in U.S. Real Estate Aren't Planning on Slowing Down Anytime Soon

A survey by Association of Foreign Investors in Real Estate (AFIRE) found 60% of respondents, with a combined $338 billion invested in the U.S., plan to increase their investment in the country this year. 

Low home prices and a view that the economy will eventually show some recovery were among the key reasons, said Ray Withers, chief executive with Property Frontiers, a property investment agency.

“In real terms, property prices in the USA today are back to where they were around the turn of the millennium, with prices in some states up to 70% below their 2006 peak and around 50% of current rebuild cost,” said Withers. 

He cited the credit freeze for the property price crash in the U.S., but noted investors who have gotten in are finding the rental market “booming.” Recent figures have shown rental demand up, including a drop in the national apartment vacancy rate from 5.6% to 5.2% between the third and fourth quarters of 2011, according to Reis. 

“Properties even in good areas can be acquired at huge discounts if you have the right contacts, but this window of opportunity wont’ be open forever,” said Withers. “Increasing investor activity within the foreclosure market is already starting to stabilize prices, and in some instances, even rise.”

On a national scale, however, prices have shown generally no upward movement recently in most major cities.


Source: http://www.canadianrealestatemagazine.ca

Newsletter

*indicates required fields.
Name:*
Email:*

Meet the team

  • Will Pratt
  • Justin Sabbagh
  • Mike Wilcox

Mortgage Calculator

Purchase Amount:
Down Payment:
Interest Rate:
%
Payment Interval:
Mortgage Term (Years)
Payment:
Total Payments:
Total Amount Paid:
Total Interest Paid:

Neighbourhoods

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.