Foreign Buyers Continue to Target US Vacation Properties

Many realtors in Southern California and other tourist destinations in the United States haven’t really noticed the housing bubble as much as the mainstream, despite what you may have heard on the news. Beachfront properties and other prime real estate destinations are being scooped up at a breakneck pace by foreign real estate buyers and investors looking to take advantage of the lower U.S. dollar and cheap housing prices due to the lack of domestic credit. Interestingly, this doesn’t only apply to second homes either- commercial estate projects are also seeing increased investment in these areas as foreign buyers are also looking to scoop up second homes and condos.

The beaches of Southern California like Pacific Beach and Mission Beach in San Diego have seen very little decline in housing prices. Despite the for sale signs, many realtors are seeing an influx of interest in the form of Europeans looking for second or vacation homes. And thanks to the cheap dollar and desperate sellers, they are an easy buy. Meanwhile, commercial real estate projects like the Lake Buena Vista Resort Village and Spa in Orlando, Florida are also seeing an influx of foreign buyers. In fact, about 64% of the buyers at the resort are from countries other than the United States. And it’s more than just real estate - the Europeans are buying so much here while visiting that they have to ship it back!

In the end, the incredibly weak (and falling) dollar value combined with record low (and falling) interest rates make for an irresistible combination for foreign real estate buyers. U.S. homeowners, unable to tap their credit any longer, may be finding themselves out of the race, but the interest from foreigners is quickly picking up the slack and driving higher prices in key vacation areas around the United States. And this is a trend that is only likely to continue as the U.S. economy keeps falling along with interest rates.

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