Saturday, June 25, 2011
Cash-rich foreigners buying up prime coastal USA
[Skip down a half-page] The Fedâ€™s monetary manipulations â€“ which are both weakening the dollar and suppressing short-term interest rates â€“ are drawing growing numbers of all-cash buyers into the housing market. Foreign all-cash buyers, in particular, are becoming a conspicuously large presence in several regional markets like South Florida. In dollar terms, for example, the US median single-family home price has dropped nearly 30% since mid-2005. But in terms of the Brazilian real, the median in US single-family home price has tumbled more than 50%. Thatâ€™s a big reason why Brazilians are combing the streets of South Beach looking for properties to buy. But understand that while this might cause Miami real estate to appreciate, Milwaukee real estate will not.