According to economist Beata Caranci, buyers may have missed the lowest house prices but, as values continue to rise, potential investors can still find good deals if they move fast enough.
The Toronto-based Caranci released the analysis to a Canadian audience. Canadians currently account for 25% of foreign real estate investment in the US, which makes them the leading group of foreign buyers.
Caranci said: "If you were trying to get in at the very bottom, you missed it". She went on to say that "the more you wait, you can expect about 5% price growth every year." With this percentage increase in value, she highlights the possibility that the road to recovery and the best returns could be ten-year, long-term investments rather than a quick turnaround.
In some states, including Nevada and Arizona, there has been a drop in the amount of foreclosed properties for sale. Investors have previously been purchasing foreclosed properties at so-called 'bargain bucket' prices, finding great deals that are almost guaranteed to return a substantial profit. A reduction in the amount of foreclosures available on the property market is a positive sign for the overall economy, but makes finding an investment opportunity more difficult.
Although investors may have missed the lowest prices for buying property, there are still real estate opportunities to be found in states such as Florida, California and Texas, which are currently proving to be favorites with foreign investors.
Florida has recently seen a surge in foreign investment. According to statistics, and although property values are rising in the area, house prices remain 50% below their peak. Should investors buy at today's selling rate, they are likely to see the value return to its former peak in around ten years.
