Foreign investors set their sites on the U.S. housing market

Some good news...leading experts are saying that foreign investment could lift the housing market. Our low prices and falling dollar are making U.S. properties a good deal!

According to this article by the Associated Press, the weakening dollar has caused many problems for consumers, but it may also be providing the fuel for one unintended — and very welcome — benefit: a rally in the struggling housing market driven by foreign investors.

"European investment is likely to pick up," said Mark Vitner, chief economist for Charlotte, N.C.-based Wachovia Corp. "Now is the time to come over and take advantage."

The theory goes like this: that foreign investors step in and replace first-time home buyers who have been squeezed out of the housing market during the recent downturn. These new investors in turn allow current homeowners to sell and trade up to larger homes.

Some mortgage brokers are already seeing a boost in inquiries about buying property from overseas. Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com, said the number of inquiries he's received from outside the U.S. is probably five to 10 times larger than it was a year ago.

While experts say that cities like New York and Chicago are likely to see the most foriegn investors, California and Florida will get their share too. Cheers to that!