U.S. Home Sales to Foreigners Surge 49% to New Record by Alanna Petroff

Introduction

The article titled ‘’U.S. Home Sales to Foreigners Surge 49% To New Record’’ authored by Petroff Alanna (2017) because it demonstrates the manner in which purchasing of houses is tiring and complex. Purchasing a house is considered to be one of the life’s biggest milestone and buyers normally have to look at a dozen of houses before getting a favorable one. This is particularly harder for those that make purchases from far and are forced to make online purchases. Real estate prices keep on increasing as the preferences and demands by consumers changes (Petroff, 2017). On the other hand, the sellers are more focused on making the best sales that not only satisfies the needs of the consumers by maximizes their earning by investing in virtual reality to support online business. Based on a national survey report released recently it was established that foreign consumers, as well as recent settlers in the last one year, spent an estimation of 153 billion dollars on acquiring housing properties in the united states (Petroff, 2017). This is accounted to be a 49 percent rise in the rate in the last three years and the utmost rate since the financial crisis (Petroff, 2017).

Political Disorder Effects on Real Estate

Despite the political disorder that emerged after the change of political powers foreign consumers had to ignore the political instability in the quest of making housing purchases. The economic and governmental uncertainty in America and the foreign markets did not discourage foreign consumers from increasing their purchases (Petroff, 2017). It is apparent that the growth is mainly grounded on economic growth and stability in the last few years given that America is known to be a land that is full of economic opportunities. On the other hand, the reinforcement of the American dollar also played a part which resulted in real estate homes becoming more expensive in most parts and immigrants and foreign buyers acted on the assumption that America is a safe, secure location that supports economic investment as well as growth.

Economic Growth Hindrance

However, despite foreign purchase increase, it has been established that most house owners are currently involved in less movement which is creating economic hindrance given that there are fewer houses for sale in an exemption of the new ones which is creating intense competition in the market. It is believed that the home occupants feel the need to maintaining as a form of carefulness rather than a necessity. In that with the increasing housing prices shifting has become even more expensive and based on the effects that the recession caused and the high living cost most of them have no adequate finances for upgrading. Most of these home occupants lost their jobs forcing them to stick to carefulness (Petroff, 2017).

Intervention Options

The increasing interest rates for mortgages and houses purchases are mainly encouraging the home proprietors to modernize and repair their houses to fit their needs rather than moving out. In this context, the economy is not only being affected negatively but the trend is affecting real estate growth. While selling competition is on the rise there are very few sales being made except for the new houses which fail to generate adequate revenue (Petroff, 2017). The desire to occupy bigger and better houses has not faded among the consumers but is apparent that the rates should be adjusted to encourage movement which will create economic opportunities and growth for the real estate business.

Conclusion

Despite the desirable growth that has been experienced in the real estate business the employment rate is low and the interest rate is high which seems to be encouraging house owners to modify their houses rather than moving out. In order to create an economic balance in the sector, there is a need to lower the rates to accommodate the demands of consumers which will in turn increase sales.

 

 

 

 

 

 

 

 

 

Reference

Petroff, A. (2017). U.S. Home Sales to Foreigners Surge 49% to New Record. Retrieved from http://money.cnn.com/2017/07/18/real_estate/real-estate-property-foreigners-purchase/index.html