The Europeans Are Coming -- and They're Buying Houses
Few Americans feel comfortable springing for multimillion-dollar mansions right now, but some Europeans do, thanks to a mighty strong euro and a fairly sickly dollar.
Small wonder then that foreign equity investors expect to increase real estate investments in the U.S. by 73 percent this year; and foreign lenders plan to increase lending by 58 percent in the U.S., according to a fourth-quarter survey conducted by the Association of Foreign Investors in Real Estate.
What does that mean for San Francisco home sellers? They may want to adjust their marketing plans accordingly. The Sotheby's Realty web site, for example, lists prices of some of its most expensive properties in euros. (Although you can select other currencies, if you prefer.) And a few industrious brokers are targeting European investors or renters on Craigslist in London or Paris. And as the Chronicle reported last year, some brokers have tweaked their business to cater to foreign buyers. Still, chances are good that New York is getting more of that action than San Francisco -- it's a looooong trek out here from Paris or London.
| January 14 2009 at 12:00 PM
Comments
A real estate trade organization says Europeans will be buying property in SF. So what!
Posted By: smi2le | January 14 2009 at 01:15 PM
4th quarter 2008 surveys are old news. A LOT has changed since then. The dollar is surging as the European economy tanks right alognside our own. Billionaire European investors are committing suicide. Sorry, but there won't be any white knights to scoop up all the distressed properties and keep the bubble inflated. We'll be back to 1999 prices in a few years.
Posted By: DanU | January 14 2009 at 03:30 PM
Poor people LIKE ME don't have to worry about such "trivialities". SO THERE !
Posted By: sometimeswhy | January 14 2009 at 06:58 PM
As long as we can sell our excessive surpluse of homes and increase revenues for local city/county/state agencies, I see this as a positive all the way around. If they need remodels, contact mddesignhomes.com
Posted By: mddesignhomes | January 14 2009 at 07:09 PM
Geez, this is out of date. I guess will be foreclosing on Euro types too only they won't be eligible for FNM or FHA bailout programs.
Hope people start getting it. This is a global economic collapse- started by, you guessed it, California real estate speculation.
Just as a ZIRP Fed funds rate can't kick
start credit again, neither can a 5% 30 year loan restart the McMansion market. We are in this for the duration and it will be a long and hard road for those who peddle debt.
Posted By: scottangell | January 14 2009 at 09:23 PM
Can we flag mddesignhomes for hawking her business in every freakin' real estate article? It's getting old. Her grammar is so bad that she doesn't even know the difference between "prospective" and "perspective." (See the article about staging.)
Posted By: SloppyJimbo | January 15 2009 at 11:16 AM
This article seems completely out of date, "a fairly sickly dollar" did you completely miss October 2008? The euro is down to $1.31 from $1.52, the exchange rate is completely unfavorable to them, especially the British since the pound dropped to $1.46 from $2.05 or so. The dollar hasn't been this strong versus European currencies since around 2003.
Posted By: cardinal2007 | January 15 2009 at 11:19 AM
And by the way, md, this isn't "a positive all around." People like me in their late-20s and early-30s are hoping these surplus houses DON'T SELL so we can actually afford one before we're too old to enjoy it. I give a big thanks to all the greedy baby boomers like you for driving prices into the stratosphere.
Posted By: SloppyJimbo | January 15 2009 at 11:23 AM
Well really now I don't think California's anywhere near the top of the list don't become frenzied with worry: FLORIDA
Posted By: sparkybro | January 15 2009 at 11:24 AM
Another reason for SF prices to remain ridiculously high and for someone to profit while the majority that can't afford a house in the bay area suffer.
Posted By: friscoelement | January 15 2009 at 02:34 PM
This is poppycock and a shameless advertisement.
Posted By: ptuffli | January 15 2009 at 08:00 PM