As the real estate industry is of the country is slowly recovering and getting back on its feet, market analysts are seeing a slight decline in foreign house hunter’s interest in properties in the US. This decline is attributed to the increase of home prices in the US and the strengthening of the real estate sector. This increase in home prices is what is putting foreign buyers off from buying especially in the Fort Myers-Cape Coral area as reported by the real estate search and marketing website Trulia.
The real estate search and marketing site also reported under its recent International House Hunter Report that the share in foreign home searches slid down 10% on an annual basis. This report was based on searches made from April 1st to June 30th in different metropolitan cities including Fort Myers-Cape Coral area. The sharpest decline in interest is very apparent in metropolitan areas where home prices have appreciated in the last couple of months.
After home prices nationwide continued to decline, it has only been recently where the real estate economy is slowly recovering from this crisis. Home prices nationwide have gone up to 0.3% last month which is considered a slight rise in the home prices.
Foreign investors are more inclined to buy homes when prices are at their lowest but they lose interest when prices climb up as in the case of Miami and Phoenix where prices climbed up to 15%. The demand for properties quickly declines once the prices start to climb.
The Cape Coral and Fort Myers areas ranked 7th nationwide in international searches performed during the first quarter of 2012. However, the number of searches dropped to 10.2% for the second quarter 2012. Last year, these areas in southwest Florida enjoyed a percentage rate of 11.9 in international searches.
Learn more about Cape Coral properties here.
Countries such as Greece, Italy and Spain where the European crisis hit the hardest also have declined in the number of foreign investors who are interested in buying property in the US. Foreign investors are typically interested in these types of properties for they are looking for safe place to invest especially for countries hit by the Euro crisis. The increase in the number of searchers from these countries started in 2011 and peaked in the fourth quarter of 2011. But after the home prices have started to appreciate, the numbers of searchers have fallen to 15% since.