Categorized | Residential

Home Prices Increase in Manhattan Due To Foreign Demand

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Prime residential real estate markets in the United States continue to reap the benefits of foreign buyers. Manhattan is the latest prime city to experience a housing price increase, as foreign demand in the city continues to rise. Prices in the city have improved three percent since the last quarter.

The average selling price of a condo in Manhattan is now at around one and a half million dollars. According to data collected from real estate agents, roughly thirty-five percent of those that purchased a new home or condo in Manhattan were foreign buyers. The trend is expected to continue, as international investors look to capitalize off the weakened state of the United States dollar.

Miami has experienced similar growth due to foreign investment. Foreign buyers are purchasing homes of all sizes, ranging from one-bedroom condos to mega mansions in the prime cities. The foreign investors buying homes in New York are mostly coming from Europe, Russia, and South America.

With lending standards becoming more stringent daily, many sellers are welcoming foreign investors with open arms. Many foreign buyers are purchasing homes in cash, which makes it possible to expedite each sale. Because prospective homebuyers in the United States are finding it to be almost impossible to secure a housing loan, they are unable to compete with foreign investors that have access to liquid money.

The most recent sales to foreign investors helped boost overall sales volume levels to numbers not seen since before the real estate market crash. The increased interest from foreign investors has also help reduce the average amount of time that a house stays on the market for sake.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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