Who is buying U.S. Real Estate right now?
A survey released by Move, Inc. indicates that U.S. Real Estate investors are the ones taking advantage of the market – low prices, foreclosures and short sales abundance… First-time buyers seem to be doubtful of dealing with such complicated deals. This concept could be especially true in a city like San Francisco, where many local residents are still priced out, and strict lending laws are pushing out those who could have been inclined to stretch the truth about their incomes to qualify for loans.
According to the survey, American investors are looking in their own backyards for opportunities. Most experts (69%) believe it will be easier to find U.S. Real Estate properties in the near future; therefore local markets may be heating up with renewed investor interest and activity. 2 out of 5 investors think it will be easier to sell their properties in the next six months.
Investors don’t have to be local. Cities like San Francisco also attract much foreign investment. The “deals” in this city are still too expensive for most people living there, but that doesn’t mean that someone can’t snap them up… for cash.
Scottsdale, Arizona, is also offering U.S. Real Estate gems with amazing deals on winter homes and rental properties.
Gregory Larson, an Arizona broker who specializes in selling Scottsdale real estate, explains that the Scottsdale’s real estate market was one of the most expensive in America in 2005. Even when the overpriced Phoenix market fell in 2007, Scottsdale’s prices fell relatively little. In 2009, there was a more significant decline in Greater Phoenix and by March 2011, Scottsdale’s homes finally dropped 43% in value. By April 2011, distressed properties in Scottsdale had pushed foreclosures up to 39.1 per cent.
Median prices vary significantly across Scottsdale, increasing from the southern section to the newer developments in the north, with family homes, condos and resort style properties ranging from the $100,000s to multi-million dollar estates.
According to Larson, “Now is the perfect storm for Canadian U.S. Real Estate buyers in Scottsdale.
There’s ample inventory, bargain prices and a high Canadian dollar.” According to him, most demand today is coming from out-of-state investors and Canadians. Cash deals are taking over the market. He says many U.S. Real Estate investors are taking advantage of the affordable prices and purchasing homes to rent – there are steady rents, plenty of tenants and an excellent cash flow.
According to him, “we’re getting closer to the tipping point where property values go up. If we see a couple more months like this past March, I can see a changing of the guard for homes in Arizona”. So now is definitely the time to buy U.S. Real Estate!