World on the Mend

While housing markets in the world’s leading economies remain distressed, hope is on the horizon. According to globalpropertyguide.com of the 27 countries which have already published their Q3 data, 16 countries have experienced rising prices and falls in only 11 countries. Economies such as the UK, Canada, Germany, Singapore, and South Africa are finally noting positive price changes quarter-on-quarter after being negatively affected during the economic slump. Of this group, the rising prices in the UK, Canada, Germany, and South Africa are the first after suffering declines every quarter since 2008. While some markets’ increases are more modest than others, the over-arching trend is toward recovery. More information on specific housing markets is available at globalpropertyguide.com.

A New No. 1?

The long-standing real estate top performer is on the brink of losing its status. As one of the first countries to raise interest rates since the global recession began, Israel has the market concerned that the higher rates will discourage borrowers and lead to a drop in property purchases. The rate currently stands at 0.75%, and will likely increase in an effort to fight inflation. According to propertywire.com some economists are predicting that interest rates will go up to 2.5%. This could mean a decline in property prices, but are more likely to stabilize than plummet.

Foreign Buyers Taking Advantage of Slashed Prices

If you haven't been looking outside the U.S. for potential buyers, it might be time to start. International investors bought 154,000 homes and condos in the 12-month period ending in May, and are continuing to take advantage of the weak dollar. The U.S. dollar has dropped 9 to 11 percent since June against foreign currencies like the Japanese yen, the European euro and the Canadian dollar. Another attractive feature is that, while the U.S. dollar has weakened significantly, the economy is showing signs of stabilizing along with the housing market. A plus for REALTORS®? Nearly 46% of international home buyers paid cash for homes purchased, and the median price foreign buyers paid for a home was nearly $80,000 greater than the U.S. national median price. According to msnbc.com buyers from Brazil, Canada, France, and the Netherlands have paid mostly cash for second homes ranging from $6 million to $15 million in condo buildings.

Photo highlights from the California Dreaming Tour

These photos from the California Dreaming Tour were brought to us by REALTOR® and SBAOR member Marija Terzic.



Trump National Golf Course




At the California Dreaming Tour opening reception on Sunday, November 8.




At Blenheim Farms, San Juan Capistrano, CA





At Blenheim Farms, San Juan Capistrano, CA

Highlights from the California Dreaming Tour

On November 8-10, 2009, the South Bay Association of REALTORS® and the San Diego Association of REALTORS® hosted the California Dreaming Tour, an very special event leading up to the National Association of REALTORS® Convention & Expo in San Diego, November 11-15.

Attendees on this extraordinary tour got an insider's peek at properties and places that are unique to the South Bay and San Diego communities. We are delighted that the event was a huge success and that the results have been spectacular. A special thank you to everyone to helped make it possible, including the South Bay Association of REALTORS® International Committee and our friends at the San Diego Association of REALTORS®: Michael Harris, Liz Saidkhanian, and REALTORS® Griselda Mendoza-Cadman and Dianne Rath. Later posts will show more photos and stories about the tour.

Communicate Globally with the Google Web Translator Tool

NAR has put into place the Google translation widget at the launch page for International REALTOR® Members. This free widget translates not only the initial web page on which it sits into 30+ languages, but also translates linked pages and subsequent linked pages and so on down the line (sort of 6th degree of separation concept). While electronic translation isn't a perfect science, it's improving all the time and most find the Google tool to be more than sufficient in terms of web site communications. Check it out. Download the Google translation widget for use at association and firm websites to add an international element to online presence.

FDI to Decline in 2009 with Slow Recovery in 2010

Global foreign direct investment (FDI) flows have been severely affected by the economic crisis. Inflows are expected to fall from $1.7 trillion in 2008 to below $1.2 trillion in 2009, with a slow recovery in 2010 (up to $1.4 trillion) and gaining momentum in 2011 (approaching $1.8 trillion), according to a new report from the United Nations Conference on Trade and Development (UNCTAD). The U.S., along with China, India, Brazil and Russia (the so-called BRIC countries) are likely to lead future FDI recovery, FDI to the U.S. actually increased in 2008 to $316 billion, up from $271 billion in 2007, due to an increase in loans from parent companies to their U.S. subsidiaries. UNCTAD doesn't expect a similar surge in intracompany loans in 2009, resulting in a projected decline in FDI into the U.S. Download the full 313-page report, or read the 55-page overview.