The weakening dollar has created many issues for US consumers, but could it be help our housing economy with foreign investors looking for an investment or even a second home?
"European investment is likely to pick up," said Mark Vitner, chief economist for Charlotte, N.C.-based Wachovia Corp. "Now is the time to come over and take advantage."
This winter we are foreseeing that foreign investors will step in and replace first-time home buyers who have been squeezed out of the housing market during the recent downturn. This surge of foreign investors in turn will enable current homeowners to sell and trade up to larger homes, a process that has been crucial in our economic growth.
As the real estate market has slumped the dollar has also sunk to all time lows compared to other foreign currencies, such as the euro. This means that foreign investors can purchase more in the US. This in turn will make the real estate market very appealing this season.
The surge of foreign investors can help set a floor for our market here in SW Florida. Guess where the top places for foreign investors will be??? Florida and California are expected to have a surge in foreign investment which will help in placing a bottom to our market.
Speaking of bottom… Where was the top?