Own A House - real estate market news

Rich foreigners have already for a long time bought the second dwellings in megapolis like New York and Miami, and not only for business purposes and entertainments, but also as profitable investments. But recently this tendency has even been intensified.

According to the National Realtors’ Association, the last year each fifth realtor company has pushed the business through the foreign investor. Fast decline in dollar’s value to euro and English pound this year has strongly reduced the price of the American houses for Europeans, and landslide of prices because of mortgage crisis has made them more attractive for other foreigners.

Realtors also mark, that high-interest of foreigners to investments in the American real estate has led to increase in demand for houses in before unpopular areas.

The report «Beige Book» which is published on a regular basis and describes economic climate of the USA as a whole and separate regions in particular, has disappointed investors with its vagueness and first of because of absence of FRS’ promise to lower both long and short interest rate.

US real estate market should be mentioned here separately, as the climate of this market has recently riveted stockbrokers’ attention. Real estate market, yet even before the burst crisis at stock exchanges, as of July showed the lowest sales for the last six years. Experts of this sector of the market, as a wonder-working remedy see the further decrease of the loan rates. Otherwise they predict, the US economy will fall in long and gloomy recession.

However FRS does not reduce the rate not in vain, as all would be too simple, if the simple lowering of interest rate was a universal remedy.

Moods of investors were expressed in a rush jettison of shares for the benefit of reliable bonds purchase. In general, the market is subject to mass moods and very sensitively reacts to news and rumors, sometimes not adjusting influence scope of the received data.