International interest in the US real estate market is on the rise, according to a survey by Association of Foreign Investors in Real Estate (AFIRE). The study showed that 60% of respondents indicated that they would be increasing their investment in the US in the upcoming year. Together, those respondents have a combined $338 billion already invested in there.
The reasons for the rebounding interest in the US arises from the belief that the economy will eventually show some recovery and is coupled with the low home prices, says Ray Withers, a chief executive with Property Frontiers. Withers reports that investors are currently finding the rental market to be ‘booming.’ A drop in apartment vacancy rates (from 5.6% to 5.2% between the third and fourth quarters of 2011) indicates that rental demand is on the rise.
“Properties even in good areas can be acquired at huge discounts if you have the right contacts, but this window of opportunity wont’ be open forever. Increasing investor activity within the foreclosure market is already starting to stabilize prices, and in some instances, even rise,” explains Withers. — Kit Kadlec, Canadian Real Estate Wealth
What is your opinion? Is the US real estate market ripe for investors?
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