Wealthy foreigners drive US market

Clearly the US could use a little Vancouverism.  They don’t seem to understand that the exciting and nebulous ‘wealthy foreigner’ concept should be enough to drive a housing market to new highs, not rescue it from new lows.   Perhaps the problem is that they have actual data on the impact of foreign buyers, instead of relying on vague hype from realtors:

Their purchases accounted for 4.6 percent of the residential market, or about $41.7 billion worth of US property from April 2009 through March 2010. That’s up from the 4.2 percent ($38.8 billion) of the residential market purchased by international buyers in 2008-2009. About 28 percent of American realtors reported having one international client this year, as opposed to 23 percent the year before, according to the report.

Many international buyers cited the emerging economic recovery as a driving force to buy, and most saw the US as a desirable location to own a home. A majority of international buyers purchased homes in regions most impacted by the housing bubble — including Florida, California and Nevada — perhaps in part because of the increased inventory available in these areas.

International buyers also spent significantly more than domestic buyers. They paid, on average, $219,400 on residential properties, as compared to $173,000 for existing home sales during the same period.

But financing continued to be a problem for foreign buyers. About 55 percent of international buyers paid in cash for their homes instead of taking out a mortgage.

Full article here.

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bubbly
bubbly
10 years ago

According to Landcor data, Asian investors own a whopping 977 units out of a total of 677,483.

D. Bone
D. Bone
10 years ago

30 investors taking tour of Toronto and Vancouver this summer expected to drop a half-million dollars each …

Oh! Half a million each? So, their going to buy in Hope?

KopyrightKlepto
KopyrightKlepto
10 years ago

I call those Burnaby Boom Boxes "!VHB". ie. Not a Very Humble 'Bode.

realpaul
realpaul
10 years ago

I'd say that Joes been Blowing something all right…maybe a bit too vigorously…he seems to have sucked out his brain to be accusing realpaul of being a commie. The fact is Joe, that there is right and wrong. Its the politicians and the manipulators who want you to join one side or the other and suck up whatever kool aid they're serving. Outing scum bags is neither left or right, it is however the right thing to do.

fixie guy
fixie guy
10 years ago

http://www.news1130.com/business/article/77073–c

Effect on rental markets? 😉

Anonymous
Anonymous
10 years ago

CULT index down again..

Steevee
Steevee
10 years ago

Double digit sales days would be nice. Maybe we could have a little mini-party if it happens, just to tickle the bulls' underbellies.

Steevee
Steevee
10 years ago

@Devore:

Continuum? Is that the name for the next crappy condo tower to go up downtown?

Anonymous
Anonymous
10 years ago

@VHB: "Is it just a ‘monster home’–nothing more specific?"

No that's a Vancouver Special all right, just a different vintage. I define Vancouver Special as the East Side cookie cutter design du jour. Same sh!t layout, same sh!t character. Maximize that footprint, baby!

Superfly
Superfly
10 years ago

We are also heading for double digits in daily sales!

Superfly
Superfly
10 years ago

Half a million dollars! That might get you a 1 bedroom condo near a good school.

Jimmy
Jimmy
10 years ago

Looks like some 30 investors from China are going to buy up properties in Vancouver and Toronto, near the "best schools and universities".

http://www.theglobeandmail.com/report-on-business

China's latest export: home buyers

30 investors taking tour of Toronto and Vancouver this summer expected to drop a half-million dollars each

Devore
Devore
10 years ago

@Steevee: Well, it's a continuum, not a spectrum.

VHB
VHB
10 years ago

@VHB: one last thing. Note that new listings are projected to be around 5K. ho hum. In 2008 July we had 7104 new listings (zoom!). In 2009 july we had 5061.

Maybe we just had the big listings rush earlier this year than in 2008; the rush to the exits happened earlier this year.

Doesn't matter too much–it is not sell/list that drives prices, it is MoI, baby!

VHB
VHB
10 years ago

@VHB: crap. Correction. 2008 June sales were 2425. 2008 july sales were 2174. Doesn't change the DOUBLE DIGIT MoI BY SEPTEMBER prediction, though!

VHB
VHB
10 years ago

@ptotheb: Here is the linear projection for the rest of July, given those numbers. item sales listings sell/list days elapsed 8 8 average 116 234 days left 13 13 projection 2444 4911 49.8% Sales are anemic. Recall that 2008 sales were 2425 for July. I think we will do worse than that this month. That would push MoI closer to 8 than 7, even with steady inventory. AND, sales typically don't go back up much for the rest of the year (except maybe for a blip in October.) So, even if inventory does just stay at 18K or so, with sales heading south . . . well, you can do the math. From 2006 to 2009, average sales in September were 82.3% of sales in July. So, if this year is the same as the average, we're looking at sales… Read more »

Steevee
Steevee
10 years ago

Realpaul is so far right that he's become left!

Absinthe
Absinthe
10 years ago

@VHB: I've followed someone's lead – either here or on VREAA – and am calling them "Boom Boxes".

Oh, was it Froogle Scott? I think it might be.

oneangryslav2
oneangryslav2
10 years ago

@Joe: I agree. I wonder if the irony is lost on the original poster?

@Joeblow: It's astounding that two people can look at the same thing and come to two different conclusions/interpretations. Realpaul, a leftist?!?!? Wow! I'm at a loss for words…

ptotheb
ptotheb
10 years ago

New Listings 208

Price Changes 116

Sold Listings 100

18,112

van rant
van rant
10 years ago

@Aleks: Remember Carney is from Bay Street and he would like to keep his Bay Street buddies happy by keeping interest rates low. Look for a quarter point raise however the housing market is crashing hard due to its own weight.

bums up2
bums up2
10 years ago

VHB you're right in calling them the successor to the Van Special. I have some good names for them but I'm trying really hard to swear less on this blog so I'll keep them to myself. They are so bland I almost don't notice them, but they seem to be the primary design of houses built the last 10 years or so.

I think Van Specials sometimes get renovated to look like this also.

(The circle completes).

Joeblow
Joeblow
10 years ago

Is there a moderator on this blog? I suggest that posts by realpaul and the like be removed. Regardless of whether many people share his leftist political views, this is a real estate forum. There are plenty of public forums where we can discuss other issues.

Aleks
Aleks
10 years ago

Odds of another BOC rate hike next Tuesday:

96%

I'm hoping for a half-percent hike. Come on Carney, show some stones!

Joe
Joe
10 years ago

@patient renter:

PATIOENT renter Says:

July 13th, 2010 at 4:43 pm

Do we have numbers for today?

_____________

Funniest post of the day IMO 🙂