opportunities for investors with cash

There has been much talk about the effect of the subprime mortgage crisis in the US on its real estate market. The collapse or near collapse of many financial institutions which dealt in subprime mortgages, as well as, the vast amount of foreclosures have all affected the real estate market. As a result, mortgage banks are now much more selective and much more cautious and the large numbers of foreclosures have created a glut in the market which force prices down.

Prices are falling dramatically and in some places namely in Florida and Las Vegas prices for residential real estate have fallen by more than 50 percent while on a national average prices have fallen by over 30%.

And the crisis is not yet over.

Each foreclosure brings further falls in prices, and each time a financial institution announces losses it means that there is less money available fort mortgages. This is bad news for those US residents who want to buy a dwelling and need finance and it is also bad news for those who for diverse reasons need to re-finance their mortgages.

But a falling market also presents many opportunities for investors especially those with ready cash.

"The current real estate downturn in the US has created many investment opportunities. This holds true for US investors with ready cash but it is even more true for overseas investors," said Ami Segal. "The dollar has weakened in the money markets of the world which means that the buying power of the pound sterling the euro the yen and yes the shekel has increased substantially and real estate in the US are considered very good bargains".