Published: 9th September 2013
A new report out from the National Association of Realtors (NAR), have shown that over id="mce_marker"6 billion worth of US property has been purchased by overseas investors in the last year. This increase represents the largest increase in overseas purchases are several years, and demonstrate an increasing trend for investors looking to capitalise on property in the US it is seen as being below market value.
The US property market is currently seen as offering exceptional value for money due to the large amount of excess stock for sale, which has driven down prices over the course of the past two years. These lower prices, coupled with the potential for long-term capital growth and strong rental demand, have seen increased number of overseas investors focus on the US and away from more traditional European property markets.
As well as the lower prices, investors have also been attracted to the US due to the weaker strength of the US dollar, which has opened up the opportunity to a wide range of investors than previously possible. The figures show a large number of the investors were from Canada (23%) and also China (9%).
The majority of the demand from overseas investors focused on the Florida property market, which is predominantly driven by strong rental demand from tourist visitors.