Housing News

The Rich are Here to Save Us

A new survey shows the U.S. is still a top investment destination for RE.

Wealthy real estate investors are still in the mood for pouring in their money to America. Barclays Wealth and the Economist Intelligence Unit have published a report about “Prospects for Property: On Solid Foundations.” The official press release states, “As well as revealing whether respondents would be increasing their allocation to property, the report also gauges their confidence in the sector. When asked about their general outlook towards residential property, 76 per cent said they believe that there are opportunities. Investors are also optimistic about commercial property, with 68 per cent feeling that there are opportunities available.

“The report reveals which regional property markets investors view as the most attractive outside their own domestic market. The US – where sub-prime mortgages were a key catalyst in sparking the wider recession – is deemed significantly more attractive than all other markets, with 16 per cent of respondents saying they anticipated the best returns there.”

Now this is one good reason why our real estate market shouldn’t die. If foreign investors are diversifying their real estate portfolio to reduce the risks of a highly concentrated market, there should be more reasons for us to expect an impending upturn in the industry.

The Case-Shiller Home Price Index reveals that national QoQ changes for this year are slowly gaining momentum. Both the 2Q09 and 3Q09 changes have reached a 3.1 percent improvement albeit the YoY comparison for the 3Q09 is still at -8.9 percent. Nevertheless, the U.S. National Index chart is slowly taking a positive route from last year’s heavy plunge.

Reading Barclays Wealth’s study brings cheers in a still gloomy market.

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