The Best Time To Buy Luxury Property In United States

New properties abound in the New York, Los Angeles and Miami real estate markets. There is an increase in the construction of towers aimed at foreign buyers and wealthy U.S citizens. There are brand new luxury condos in Manhattan and in Miami-Dade County (Florida), thousands of new condos are under construction targeted for Latin American investors. However, the purchasing power of international investors, who led to the increase in the supply of real estate properties in the first place, has lessened. This situation is really hurting the real estate market as sales of homes have slowed down in cities across the United States.

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Listed properties are staying on the market for a longer period before they are purchased, as the few buyers who are available are taking more time to make deals. A decrease in the demand for second homes has resulted from the rising strength of the dollar and the current weakness in the economies of foreign countries. With the flooding of the U.S. real estate market with properties and the existence of few buyers, homes are sold at prices lower than the listing price.

Exchange Rates

The rising of the dollar against other currencies has definitely affected the U.S. real estate market. Russians who previously contributed to the surge in the demand for luxury homes in New York and Los Angeles and who purchased high-priced properties in Miami and Manhattan were the worst hit. The decline of the Russian currency is as a result of the fall in oil revenue. With the current dollar rates, Russians are being prevented from purchasing luxury homes in United States. The pound has fallen 7.8% against the dollar while the euro lost 15%. The peso plunged 21% as Argentina struggles to offset its foreign debt while the Russian rubble tumbled 48%.

Even as the current exchange rates will limit the purchasing power of some foreign buyers, wealthy investors such as Chinese buyers will be attracted to invest in the U.S. real estate market. The Chinese have invested almost 5.9 billion dollars in Los Angeles real estate, and are still purchasing homes in California. However, the surge in the supply of properties may lead to the adjustment of their prices, resulting in the best time to invest U.S real estate.

Real Estate Market

Despite the current dollar rate, buyers are obtaining loans to fund their purchase of luxury homes. New York, San Francisco and Los Angeles are the top three U.S cities that are currently experiencing increased investment in the real estate market. As the U.S does not limit sales of real estate to its citizens, foreign investors are welcomed into the market. Investors can resell purchased property later at a higher price for profit or rent it out to earn income.

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