The market has now more than stabilised, and is now showing steady signs of growth, after the prices dropped by over 100% in some areas.
Nationwide prices are expected to increase 5.7% from July 2014 to July 2015.
However the international demand is growing and will continue to grow significantly over the next 5 years.
Some 9.3 million Chinese have emigrated in recent years, and 64 percent of the country’s remaining rich households — a category that includes a few million people — want to leave or are in the process of doing so.
The United States is their preferred destination, and American real estate is becoming their new T-bills, a safe-haven asset for them. Like bullion, it’s an asset class denominated in U.S. dollars, safe from confiscation and, when necessary, bought anonymously to hide wealth from governments or creditors or ex-partners. But unlike bullion, U.S. real estate can earn income, provide a roof and help obtain a visa.
A modern-day Chinese emigration wave is already underway, but a tsunami may soon hit America’s shores. This month, U.S. real estate Web site Zillow begins publishing its entire U.S. real estate property database in Mandarin on the biggest real estate Web site in China. This means Chinese buyers can surf the Net to find properties near family and friends in their price range. “The fact that Zillow is going there is huge,” says Hall Willkie, president of New York real estate firm Brown Harris Stevens Residential Sales. “The Chinese may just overwhelm the United States with purchases.”
In 2013, Chinese buyers snapped up $11 billion worth of properties in the United States, capturing second place (at 12 percent of all foreign buying) behind Canadians for the first time, according to the National Association of Realtors’ Profile of International Home Buying Activity. In the first quarter of 2014, Reuters reported that Chinese investors had even overtaken the first-place Russian expatriates in the purchase of Manhattan condos. Now with Zillow, they will have an even easier time prowling for properties anywhere in the United States.
So all the indicators are that this is a good time to buy in USA.
Why Invest in Orlando?
You’ve chosen USA, so where within USA?
Clearly the Million dollar plus apartments in NY are out of the reach to most of us, so it is a case of looking at the value, and the strong rental markets.
Orlando is one of America’s fastest growing residential property sectors. Home prices rose by 8.7% in July 2014 when compared with the same time last year, while month over month prices increased 1.8% in July over June. Nationwide prices are expected to increase 5.7% from July 2014 to July 2015.
The world beats a path to this renowned tourist destination, which is helping to revive its once beaten down housing market.
“Everyone comes to Orlando: Canadians, Europeans and South Americans,” said John Tuccillo, chief economist for the Florida Association of Realtors. Many of the buyers he sees these days are Brazilians, who buy properties and turn them into bed and breakfasts for other visiting Brazilians.
The inventory of homes for sale plunged 44% during the fourth quarter, according to Realtor.com. Those that were on the market took 37% less time to sell than they did a year earlier.
It’s not just the tourist economy that’s leading the housing revival. Job growth is being helped by the development of a major medical complex in the Lake Nona area southeast of Orlando. Among the construction projects, there will be a new VA hospital, a University of Central Florida College of Medicine, a medical research facility and a children’s hospital.
“This is a big contributor to the economy,” said Stephen Baker, president of the Orlando Region Association of Realtors. “We have a lot of clean industry, high-tech jobs coming up.”
Recently, Forbes and Local Market Monitor pulled data for the 100 largest metropolitan statistical areas (with populations of more than 575,000) and created a list of the top 20 housing markets to invest in for 2014. To determine the rankings, markets were rated on population, home prices and the local job economy.
The key to determining home prices and affordability is what Local Market Monitor has dubbed the “Equilibrium Home Price.” The equilibrium home price is what the average price in a housing market should be, if speculation, distortions in local income and other factors (like the housing collapse) weren’t present in the market. In a healthy housing market, it is expected that prices will return to or surpass the equilibrium number. When the actual average home price is under the equilibrium price, it is a good time to buy.
According to Forbes and Local Market Monitor, Orlando came in at number 8, in the housing markets to invest in a home in 2014. Data for the Orlando housing market showed an average home price of $172,609 with an equilibrium home price of $209,047. Over the next three years, the average Orlando home price is projected to surpass the equilibrium home price with a forecasted growth of 35 percent.
Would you be interested in investing in a deal we have secured in Orlando with developer finance and a guaranteed rental?