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Let's Go2Mazatlan - Articles Global Real Estate - How does it affect me? According to a recent report from National Association of Realtors in their international research division, all foreign buyers for second homes slowed down their purchasing in 2007 and 2008. It had been established previously that 15% of all home transaction in Florida, as far back as 2005, were made by foreign nationals from Europe, Canada and MEXICO. The housing recession is not solely a US problem, but international and includes Europe, China and S Korea as well as now Mexico and Canada.
The global stock decline has also limited the number of people with financial capability to buy now compared to the past. As the stock market improves, additional equity for buying properties may improve. For those international buyers who have cash cushions and can play in this market to find low prices and good value, now is an exciting time. Arizona experienced a surge in buying activity from Canadians in early 2009. American Baby boomers are the demographic we have been familiar with which buys second homes more than their predecessors. We know that they want to enjoy leisure time now and consider a second home for permanent or semi-permanent retirement. What we have learned now is that the baby boomer phenomenon is not only a unique US experience. The Second World War ended at the same time in the countries of Europe and Asia. These international baby boomers also want to retire with an option of a second home experience. The NAR estimates that currently there are five million Americans living abroad at any given time. This figure includes those who work abroad and those who do not. NAR estimates that there are more than 500,000 Americans living abroad who own property in their country of residence. México has been their top choice of a destination. We are truly global and we need to realize that our focus has to be what is happening everywhere. “No man is an island” applies today on more levels than ever before. As we enter the global era, we need to realize that international trade has been consistently outpacing domestic economic growth. International second or primary home purchasing will continue to occur because of the interaction between countries dealing in international trade or business. World economies will rise and fall and our ability to protect our own investments depends on our understanding we are in a global situation. There are emerging opportunities now in the world, not just in our back yard. With a global economy, competition is more varied and success requires an understanding of this. What do buyers look for? How hard is it to understand that if prices are low in Arizona, Canadians see value and buy? What are the basic factors they find compelling? The need for... warm climate, safety of investment, efficient air conditioning systems and purified water, dependable electric and sewer service, good roads, law and order, grocery shopping, entertainment, natural beauty of the terrain, proximity to one’s primary home? In a competitive international market, the countries who don’t give the consumer what he wants will lose out. Allen Greenspan remarked recently that as we have become a global economy freer to deal with each other than ever before. He further states that with this freedom, we must realize that our flexibility and increased options will cause us to deal with painful recessions at times, more than in the past. The future is bright for much higher income growth for a greater number people, because of the increase in international trade. International trade sounds like such a dry subject and totally unrelated to our daily lives and our plans to buy real estate. But the truth is a country’s trade balance affects its wealth and health. International trade means a greater number of international businesses travelers and vacation travelers. People move in masses, although the movement is not always apparent in the beginning. A wise Canadian real estate investor taught me that people follow a “leader” or the one in front of the line. They “line up and follow the head cow.” This investor said he learned a lot about human beings and real estate watching a herd of cattle. Cattle follow a leader, they stay on the trail, they don’t go into blind canyons, and they walk around an obstacle rather the over or through it. This behavior applies to how humans deal with problems and how they spend their money. Email to a friendHarriet C. Murray Más acerca de Mazatlán:
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