If you think American assets are taking a beating in world markets – think again! Foreign buyers are still investing heavily in US property despite the current downturn in the domestic markets. The US housing market crisis has opened up opportunities for smart operators to make a fast buck by investing in property when prices are relatively lower and domestic demand is weak. For those contrarian local investors who are willing to take the risk, this is might seem an ideal time to invest.
In 2007, when the housing market was hitting lower bottoms with every passing month, some states like Oregon, Washington, North Carolina and parts of Florida were bucking the trend. The reason for different responses to the crisis in different states is supply and demand. When supply and demand are more evenly balanced, the market reaches a proper equilibrium. For quality investors with money to ride out the ups and downs of the high risk, capital intensive property markets, the investment in real estate always yields decent returns over the long term. When the good times return and recovery comes, your timely investment should reap handsome profits.
The weak dollar is an added incentive to foreign players to enter the property markets. Cities in the United States still remain as the most favored destinations for investing in real estate. The cooling of the highly favored property markets of Asia, specifically China, has resulted in foreign operators now investing in the US and North America. Statistics of the latter half of 2011 and early indications of 2012 are exhibiting some optimism as encouraging trends emerge.
Prices are very attractive for those wanting to acquire real estate as an investment or for end use. The quarterly survey conducted by the New York Federal Reserve Bank demonstrate that prices for new houses are the same now in 2012, as they were at the beginning of the Millennium. The attractive prices for housing offers affordability for end users and a great entry point for long term investors. American consumers are also exhibiting signs of increased confidence compared to levels before the current recession. Improving labor markets and slow signs of growth in employment rates are encouraging indicators that would convert to better days ahead for housing and real estate. The present low mortgage interest rates are also encouragement for those who want to invest in housing. States like Oregon are facing large numbers of foreclosures and low interest rates. For many smart investors, this is an ideal time to invest in property in Portland and other major cities of Oregon.
