So, the media is abuzz with rumors that foreign (non-US) investors are flooding the domestic real estate market.

Foreigners to Boost Housing Market? – By Stephen Bernard, Associated Press, by way of TIME magazine

The theory goes that foreign investors step in and replace first-time home buyers who have been squeezed out of the housing market during the recent downturn. These new investors in turn allow current homeowners to sell and trade up to larger homes.

And, why would foreign investors consider buying in the US?

Can Foreign Buyers Move the Housing Market? – By Ben Casselman, The Wall Street Journal


As the housing market has plummeted, the dollar has also sunk to record lows compared to other currencies, such as the euro, meaning more spendable cash in the U.S.

“The dollar is on sale,” said Susan Wachter, a professor of real estate at the Wharton School at the University of Pennsylvania.

Today, a foreign buyer would need only 34,100 euros to make a $50,000 down payment on a house. At the beginning of the year, the same buyer would have needed 37,920 euros to make the same down payment.

Just this month, the US trade deficit dropped to something like its lowest level in 18-months, because the cost of goods from the US were less than they were, previously.

Also important, real estate is considered very expensive in many global cities such as London and Paris, and those investors looking to spread their money (and risk) across investments of every type, the US real estate market seems ripe for the picking.

My opinion?

The idea that foreign investors will make anything more than a slight ripple in the overall US real estate market seems unrealistic.

Still, having someone, anyone, available to soak up some of the inventory (especially high-end) is a good thing, right.

Considering many of these buyers either pay all cash or make substantial down payments (either because they can or because they can’t get US financing), they make excellent investors and keep the US real estate market more stable than it would be, otherwise.

Plus, the investors usually buy in such high-profile, expensive cities such as New York, San Francisco (and, I hear … Boston). Keeping our prices high and inventory low.

And that’s what we need, right?

(Oh, and they are also buying in “ex-burbs” such as Jersey City, according to the New York Times.)

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Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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