Miami's International Real Estate Congress Conference Provides a Window into Global Housing Trends

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(MIAMI, FL) -- Many people now say the world has become a much more connected marketplace, and this week's International Real Estate Congress conference seemed to prove them right.

Miami Beach played host this week to the 16th annual Realtor event which brought together hundreds of real estate professionals from all across the globe to discuss, learn and focus on international housing trends on a worldwide basis.

This year's four day event proved to be very insightful as several key speakers presented their latest market data and economic trends driving today's global residential markets.

Below are some of the market highlights and comments from several of the key speakers at the 2010 International Real Estate Congress event.

Lawrence Yun, chief economist of the National Association of Realtors (NAR) stated;

• "The U.S. housing market is starting to find its footing and has begun to stabilize without any federal stimulus.

• "Be mindful of the 'shadow inventory'. It is large and will be coming into the market in the near future.

• "Also be mindful of a 'second' shadow inventory, which are very low levels of newly built home inventories that as both pent up demand and natural population growth occur (new household formations) that clears current excess levels of housing inventories; could lead to a possible housing shortage in 2-3 years if current low levels of newly built homes are maintained.

• "Over 28% of all NAR agents have worked with an international buyer within the last year.

• "Top 10 U.S. housing feeder markets include (in ranking) Canada, Mexico, UK, China/Hong Kong, Germany, France, India, Russia, Argentina and Brazil.

• "Top U.S. destination States preferred by International home buyers include (in ranking) Florida, California, Arizona, Texas, Georgia, New York and Nevada.

• "Consumer confidence always goes up after elections, and when confidence is up, consumers spend more money, which includes housing."

Moe Veissi, 2011 president-elect of the National Association of Realtors stated;

• "I believe the U.S. financing industry will slowly migrate to adjustable/floating rate mortgage models. Only 2 countries in the world offer fixed rate 30-year mortgages, the U.S. and Denmark. The rest of the world is on a floating rate mortgage system that better protects banks.

• "Today's historically low mortgage rates are 'Give Away' rates that will go away in the next 2-3 years.

• "In the coming years there will be an increase in both International buyer in-flow to U.S. housing markets, and an increase in American's buying homes outside the U.S. (out-flow increase).

Peter Zalewski, president of Miami-based Condo Vultures stated:

• "Because of a Florida HOA law (that was just suspended for two years starting in July of 2010 by the State legislature) that stated if any investor bought more than 7 condo units in a single building in Florida, that investor also took on the financial liability of the entire condo building HOA. As a result, many international buyers took advantage of depressed real estate prices in South Florida before many Wall Street investment firms did by buying condos in smaller 1-6 unit increments pre-July 2010 HOA law suspension, thereby absorbing much of the South Florida condo foreclosure inventory. Wall Street usually invests in bigger increments of 100 to 1,000+ condo units at a time and Florida HOA laws held them back until the July 2010 suspension of that law because of potentially very large 'sick association' liability issues associated with larger condo purchase transactions of 7 or more units.

• "A 'price floor' to South Florida condo sales has now been established as much of the prior foreclosure inventory has been absorbed.              

• "9 out of 10 condos sold in downtown Miami in 2010 were to an international buyer."

Kevin Brass, a senior real estate reporter for the International Herald Tribune (and guest news contributor to the Real Estate Channel) stated;

• "A majority of international residential property markets worldwide grew in 2010, over 61% reported increased sales this year.

• "Many international buyers are looking for safe financial havens (worldwide) that they can also use the underlying investment asset (a home or condo) as a second or third vacation home. They're not making as many passive investments anymore. They are combining their property purchases as both a real estate investment and a lifestyle investment.

• "International buyers want in U.S. real estate (in rank) 'a deal' via favorable currency exchange rates against the U.S. dollar, security (financial and personal), close to good medical care, proximity to marinas or beaches, and brand names.

• "International buyers do NOT want (in rank) golf courses, over-sized trophy homes, off-plan pre-sales gimmicks, or seclusion.

• "International buyers prefer close proximity to urban lifestyles, city centers and financial centers.

• "Top global residential hot spots include (in rank) Hong Kong, Singapore, Australia, Israel, South Africa and UK.

• "Top troubled residential markets in 2010 include Ireland, Bulgaria, Russia, Dubai, Spain and France.

• "In my opinion, the best residential investment market opportunities to watch in 2011 are St. Lucia, Brazil, Vancouver, Panama and certain coastal areas of Mexico.

• "The best way to evaluate any international property market is to study their exchange rates, interest rates, property price fluctuations, consumer confidence, consumer wealth creation trends, inventory levels  and domestic economic trends."

 

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