US Realtors are doing it hard right now to attract overseas buyers to their shores as their market dries up due to the global credit crunch. As of late it seems the Korean and Russian buyers with plenty of cash flow are the ones still in the property game whereas most others are sitting on their benches, waiting for better times.
Some real estate agents say that 10-30 percent of sales in the country are accounted for by overseas buyers.
Immobel, a Warsaw based company that specializes in online real estate listings translations into 13 languages saw their American market jump up by 30 percent.
Even so, it looks like the flow of interested parties is slowing down, leaving real estate agents country wide wondering what the future might bring.
With the strengthening of the US dollar over the last couple of months, overseas buyers lost a valuable currency exchange discount previously available to them which helped interest levels soar. With the coinciding drop of the pound, many UK buyers simply can’t afford a second home in the States anymore.
In New York alone, the number of overseas investors has dropped by 50 percent over the last six months. Another issue faced by those who could perhaps buy with a loan is the fact that the number of mortgage companies within the NY City has dropped from 10 to 4, leaving people with very little chances of actually being approved.
Miami is another property reject where sales have slowed tremendously and prices dropped by 50 percent. Many overseas buyers have taken advantage of the market but despite this, the picture is not particularly exciting.
Many real estate owners attend international trade conventions to further their networking and attract more interested parties to their shores.
Some even go to length of hiring staff who speak foreign languages, such as Chinese to better communicate to overseas buyers. It is a gamble that has paid off for some, like Sakara Blackwell, president of Optimum Realty in Honolulu. Her business increased by 20 percent over the last couple of years due to that move.
The negative outlook in general is perhaps the biggest concern for many would be buyers who simply hold back. Only the cash strong buyers are happily spending their money at present while the rest of the world watches on, waiting…
Photo credits: Flickr