Foreign elite buy up U.S. real estate

Bloomberg recently reported international investors are buying mansions in the United States, as the low value of the dollar and even lower prices are presenting the billionaires with offers they cannot pass up. Many U.S. markets, including Miami and Manhattan, are seeing a drastic increase in home purchases from foreign buyers due to their appealing location.

According to the news source, Miami and Coral Gables, Florida, are prime cities for wealthy Russians looking for a second home. Jorge Uribe, a real estate agent with One Sotheby's International Realty in Coral Gables, told the news source living in Miami, for a Russian, is a status symbol.

Despite international interest in U.S. property, Money Morning recently reported that a housing market recovery is not in the near future. High unemployment, low housing demand and market-clogging foreclosures continue to hinder economic growth with no change in sight.

The July 2011 ADP National Employment Report showed an increase in private sector jobs by 114,000, which is expected to keep the unemployment rate at 9.2 percent. Heightened loan requirements are preventing homebuyers from acquiring mortgages, and forcing many homeowners to default because they do not qualify for refinancing their current mortgage. According to Morning Money, foreclosures made up 28 percent of all U.S. residential sales, forcing regular home prices to fall.  

More News