Foreign buyer and investors bought 33% more real estate in Q2 of 2012 according to a report published by Jones Lang LaSalle.
More than $47 billion dollars were spent by foreign buyers between April 1st and June 30th 2012. Although $47 billion is less than a percent of the US real estate market's total value (a number that hovers around $20 trillion), it still provides economic stimulus and relief. Both of which are things that many local communities around the United States real estate markets can benefit from.
If foreign investors spent even half of that sum on foreclosed homes or homes in the shadow inventory of banks, then that money would be injected directly into the economy, as banks would then have more money to invest. Just because American buyers and investors may not have as much cash as they used to several years ago, that doesn't mean there are no buyers. It just means that maybe the 'net' has to be a bit more inclusive of more possibilities.
Given all the news in the Wall Street Journal, CNN, The Financial Times, and The Economist about how foreign investors seem to be turning away from their own local real estate markets due to their economic crises at home, it is a positive sign that they are investing on our shores. Of course, if they were not investing at home and they were not investing here, then we'd have more to worry about. We should take solace in the fact that other nations still view America as a land of economic opportunity and wealth.
Michael Hobbs, SRA PahRoo Appraisal & Consultancy
Twitter @Pahroo
Job Posting: Seeking two real estate appraisers for Chicago & Suburbs, salary and bonus available based on competency
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