Foreign Investors look towards the U.S Real Estate Market for Stability in Recent Weeks
As Investors look for calm and stability during the coronavirus outbreak in recent weeks, there seems to be a strong rise in interest in the U.S Real Estate market, particularly in single-family residential rental properties from foreign investors worldwide.
Roofstock, a California-based fintech company that lists single-family rental homes for sale online, stated in a CNBC report recently that they have seen traffic from foreign investors in Asia on its website jump 500% in recent weeks.
Aside from foreign real estate investors in Asia, Roofstock also noted an impressive 450% increase in traffic on their website from investors in Germany, 250% from Australia and a 100% increase in traffic from the United Kingdom.
“I think it may be people looking to invest capital into what may be perceived as more stable areas that don’t have as much of an effect, at least not yet, from the virus.” said Gary Beasley, CEO of Roofstock during the market report.
“I think people look at hard assets, things like real estate, which are uncorrelated generally to the stock market, and specifically U.S. housing, that tends to perform quite well on a relative basis during times of market volatility”.
U.S. real estate already has a number of advantages when it comes to attracting the interest of foreign investors, including continued low interest rates, stable credit environment, balanced inflation, and high employment, according to a new report released by the Association of Foreign Investors in Real Estate.
Yet this follows an established pattern in times of global crisis, as foreign investors from around the world often turn to U.S assets, perceiving them as more stable than in other places, offering a positive outlook for buyers and sellers in the U.S real estate market during this time.