Voters at Myrtle Trace Club House and Lakewood Elementary said the voting machines are not working.
A polling location worker at Ocean Drive in North Myrtle Beach said the machines were never working since the precinct opened at 6:30 a.m. Saturday. The location quickly ran out of the 50 paper ballots provided and the location had to begin turning voters away, according to the worker.
We are waiting for more information from the Horry County Election Office.
These voting problems need to be worked out before next weeks Democratic race.
Saturday, January 19, 2008
Friday, January 18, 2008
Saturday's Republican Primary
Workers at the Florence County Voter Registration Office are busy with last minute preparations for Saturday's Republican Primary.
The voting machines are all stacked up at the old public library in Florence All the machines are programmed for the primary and are ready to go.
Officials with the Florence County Voter Registration office said it's taken a lot of time to get everything ready for the primary. "We have to start between 30 to 60 days out before every election getting precinct supplies ready", said worker Mike Young.
Now that everything is ready, officials are just waiting on poll workers to pick up the voting machines and other supplies.
Election officials say they'll have to do it all over again for the Democratic Primary on January 26th.
The voting machines are all stacked up at the old public library in Florence All the machines are programmed for the primary and are ready to go.
Officials with the Florence County Voter Registration office said it's taken a lot of time to get everything ready for the primary. "We have to start between 30 to 60 days out before every election getting precinct supplies ready", said worker Mike Young.
Now that everything is ready, officials are just waiting on poll workers to pick up the voting machines and other supplies.
Election officials say they'll have to do it all over again for the Democratic Primary on January 26th.
Thursday, January 17, 2008
SC State of the State address
Wednesday night Governor Mark Sanford delivered his annual State of the State address.
The Governor's speech centered on the theme of change.
In his hour-long address, Sanford talked about how he changed the structure at the Department of Transportation. He also talked about how he cut taxes by passing the largest recurring tax cut in state history and reformed coastal insurance and Medicaid.
Even with all of these changes, Sanford called for more.
"As Benjamin Franklin said, 'When you're finished changing, you're finished.' And we still have miles to go in all that needs to change in our state," Sanford said.
In a bold part of his speech, Sanford argued the state constitution was built on racism. He offered a quote from the 1890's that said the state would never recognize the right of African Americans to govern.
"The 1895 Constitution that set today's government structure was built around the fear that a black man would be elected governor of SC and any structure built on this foundation is an insane model from which to run your government in the 21st century," Sanford said.
He called the current system the "plantation model," and urged South Carolinians start the process of change and restructure state government.
Sanford asked lawmakers for two things within the first 30 days of this session -- DUI reform and immigration.
We passed the largest recurring tax cut in state history * $221 million, eliminating the grocery tax and cutting parts of the income tax. We're slowly but surely giving our students more tools with which to learn by establishing virtual classrooms so young people can draw from experts and resources from across the state. Last year marked the first year this state fully funded the charter school statewide district. We avoided the pitfalls that Florida taxpayers will see with the next storm that hits Florida by passing coastal insurance reform that keeps in mind the reality of market principles. We're defending privacy rights by becoming the fifth state in the country to say no to the heavy-handed Real ID legislation from the federal government, and I thank each one of you who voiced your opinion in that important debate tied to the larger principle of limiting federal power. We took a step toward more sustainable development by passing the Priority Investment Act. In this past year alone, nearly 80,000 acres of land were protected, and in total more land has been protected over the past four years than during any other period in our state's history.
There are 165,082 more people working in South Carolina than there were five years ago. We have seen more investment this last year, $4.1 billion worth, than in any other year in our state's history * and I might add that those jobs and investments have disproportionately gone to rural South Carolina and places that need them most. We have instituted the first Medicaid statewide reform plan of its kind in the nation, which will foster innovation as private companies compete within Medicaid to drive down prices and improve quality. We are also breaking new ground in being the only state in the nation offering Health Savings Accounts for Medicaid patients. We are joining with Georgia and are moving ahead with a state-of-the-art port in Jasper County that will serve the growing shipping needs of businesses across our state.
The Governor's speech centered on the theme of change.
In his hour-long address, Sanford talked about how he changed the structure at the Department of Transportation. He also talked about how he cut taxes by passing the largest recurring tax cut in state history and reformed coastal insurance and Medicaid.
Even with all of these changes, Sanford called for more.
"As Benjamin Franklin said, 'When you're finished changing, you're finished.' And we still have miles to go in all that needs to change in our state," Sanford said.
In a bold part of his speech, Sanford argued the state constitution was built on racism. He offered a quote from the 1890's that said the state would never recognize the right of African Americans to govern.
"The 1895 Constitution that set today's government structure was built around the fear that a black man would be elected governor of SC and any structure built on this foundation is an insane model from which to run your government in the 21st century," Sanford said.
He called the current system the "plantation model," and urged South Carolinians start the process of change and restructure state government.
Sanford asked lawmakers for two things within the first 30 days of this session -- DUI reform and immigration.
We passed the largest recurring tax cut in state history * $221 million, eliminating the grocery tax and cutting parts of the income tax. We're slowly but surely giving our students more tools with which to learn by establishing virtual classrooms so young people can draw from experts and resources from across the state. Last year marked the first year this state fully funded the charter school statewide district. We avoided the pitfalls that Florida taxpayers will see with the next storm that hits Florida by passing coastal insurance reform that keeps in mind the reality of market principles. We're defending privacy rights by becoming the fifth state in the country to say no to the heavy-handed Real ID legislation from the federal government, and I thank each one of you who voiced your opinion in that important debate tied to the larger principle of limiting federal power. We took a step toward more sustainable development by passing the Priority Investment Act. In this past year alone, nearly 80,000 acres of land were protected, and in total more land has been protected over the past four years than during any other period in our state's history.
There are 165,082 more people working in South Carolina than there were five years ago. We have seen more investment this last year, $4.1 billion worth, than in any other year in our state's history * and I might add that those jobs and investments have disproportionately gone to rural South Carolina and places that need them most. We have instituted the first Medicaid statewide reform plan of its kind in the nation, which will foster innovation as private companies compete within Medicaid to drive down prices and improve quality. We are also breaking new ground in being the only state in the nation offering Health Savings Accounts for Medicaid patients. We are joining with Georgia and are moving ahead with a state-of-the-art port in Jasper County that will serve the growing shipping needs of businesses across our state.
Wednesday, January 16, 2008
Governor's budget
During a Monday press conference, Governor Sanford released the Fiscal Year 2008-09 Executive Budget and submitted it to members of the General Assembly. The Governor's budget is focused on education, economic growth, healthcare, natural resources, public safety and government efficiency and mirrors his legislative agenda for 2008. Highlights include an overall reduction in state spending of 4.6% from last fiscal year, income tax relief funded through a 30-cents per pack cigarette tax increase, and an additional $50 million for the Conservation Bank. Legislators will now review the Governor's recommendations and begin the process of writing the state budget.
www.843Realtor.com
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Tuesday, January 15, 2008
Democratic Primary Debate Palace Theatre
One week from Monday, the eyes of the nation will once again be on South Carolina. This time, Myrtle Beach plays host to the Democratic Primary Debate.
We're hearing this debate will be even more high profile, because of who's attending. About 40 U.S. Congressmen will be here for the debate, which is sponsored by the Congressional Black Caucus. So, there will be more security this time around. And on the day of the debate, the area around the Palace Theatre will be on lockdown.
Monday, crews at the Palace Theatre were already getting ready, cleaning up to put on their best show. Cynthia Sweeny is the General Manager of the Palace Theatre. "Certainly the most prestigious event I think that we've ever done. It's a huge honor for us."
Brad Dean with the Myrtle Beach Area Chamber of Commerce addressed the security issue with us. "There will be a lot more security, and because it's a different venue, that will require some new security challenges. But our local law enforcement and our State Law Enforcement Division are all over that."
Dean and the Myrtle Beach Area Chamber of Commerce are more confident with their plans, knowing what worked the first time around. Dean says they'll tweak traffic plans and build the sand sculpture away from the road, unlike the Republican one that stopped traffic on Oak Street.
And as everyone gets ready for round-two, the Horry County Democratic Party expects even bigger crowds for this debate. Bernard Silverman is the treasurer for the Horry County Democratic Party. "I think a lot of South Carolinians are undecided still. We're having a lot of people call up for info about Hillary, Obama, Edwards, some of the other candidates. It's a good chance for everyone to see these candidates up close."
We're hearing this debate will be even more high profile, because of who's attending. About 40 U.S. Congressmen will be here for the debate, which is sponsored by the Congressional Black Caucus. So, there will be more security this time around. And on the day of the debate, the area around the Palace Theatre will be on lockdown.
Monday, crews at the Palace Theatre were already getting ready, cleaning up to put on their best show. Cynthia Sweeny is the General Manager of the Palace Theatre. "Certainly the most prestigious event I think that we've ever done. It's a huge honor for us."
Brad Dean with the Myrtle Beach Area Chamber of Commerce addressed the security issue with us. "There will be a lot more security, and because it's a different venue, that will require some new security challenges. But our local law enforcement and our State Law Enforcement Division are all over that."
Dean and the Myrtle Beach Area Chamber of Commerce are more confident with their plans, knowing what worked the first time around. Dean says they'll tweak traffic plans and build the sand sculpture away from the road, unlike the Republican one that stopped traffic on Oak Street.
And as everyone gets ready for round-two, the Horry County Democratic Party expects even bigger crowds for this debate. Bernard Silverman is the treasurer for the Horry County Democratic Party. "I think a lot of South Carolinians are undecided still. We're having a lot of people call up for info about Hillary, Obama, Edwards, some of the other candidates. It's a good chance for everyone to see these candidates up close."
Presidential primaries, State Legislature voted to have the state pay
It's been somewhat of a pressure cooker situation for many county election offices. This is their first time handling two primaries back to back, as opposed to having them both on one day.
The upcoming presidential primaries are full of firsts. The primaries will be on Saturdays, a week apart. And the voters are paying for it.
The State Legislature voted last year to have the state pay for and run the primaries rather than the parties, at a cost of around $2 million. $800,000 of that is an additional cost because the primaries aren't on the same day, and that's causing headaches for county election offices. We should add though, the candidates were charged a filing fee so that will help deflect some of the costs.
All of the machines must be reset in the week between primaries, and the materials that go with them switched out.
"We've had to have our poll workers pick them up and bring them back this time because of the short length between the two elections. Normally we deliver them, but that takes four days, which we don't have," said Horry County Election Director Sandy Martin.
Precinct locations also presented a problem. Some already had prior events set, before the primary dates were nailed down.
And some voters don't want to or can't vote on those days at the polls. With 1,700 absentee ballots cast between the two parties already, Horry County election workers are hopping.
Still, everything seems to be cleared, calibrated and ready. "So far they've worked wonderful. We haven't had any problems," Martin said.
For those mailing in your ballot, all forms of absentee ballots must be in the hands of election workers by Friday before the primary or they will not count.
The upcoming presidential primaries are full of firsts. The primaries will be on Saturdays, a week apart. And the voters are paying for it.
The State Legislature voted last year to have the state pay for and run the primaries rather than the parties, at a cost of around $2 million. $800,000 of that is an additional cost because the primaries aren't on the same day, and that's causing headaches for county election offices. We should add though, the candidates were charged a filing fee so that will help deflect some of the costs.
All of the machines must be reset in the week between primaries, and the materials that go with them switched out.
"We've had to have our poll workers pick them up and bring them back this time because of the short length between the two elections. Normally we deliver them, but that takes four days, which we don't have," said Horry County Election Director Sandy Martin.
Precinct locations also presented a problem. Some already had prior events set, before the primary dates were nailed down.
And some voters don't want to or can't vote on those days at the polls. With 1,700 absentee ballots cast between the two parties already, Horry County election workers are hopping.
Still, everything seems to be cleared, calibrated and ready. "So far they've worked wonderful. We haven't had any problems," Martin said.
For those mailing in your ballot, all forms of absentee ballots must be in the hands of election workers by Friday before the primary or they will not count.
Monday, January 14, 2008
South Carolina will have 150,000 new residents this year
Thanks largely to golf and a thriving tourism industry, the Carolinas and other Southern states emerged as top migration destinations in 2007, according to an annual study conducted by United Van Lines, the nation's largest mover of household goods.
Nearly two-thirds of all moves, 61.6%, were to North Carolina, making the Tar Heel State the year's top migration destination. South Carolina was another top residential moving destination for 2007, nabbing 57.8% of all household movers.
Other states receiving the most inbound residents were:
Nevada, 59.4%.
Washington, D.C., 58.5%.
Oregon, 58.4%.
Alabama, 57.9%
The Carolinas to tourists or would-be residents, predicted that South Carolina will have 150,000 new residents this year and North Carolina will have twice that many.
Charleston emerged as the No. 1 most-preferred destination for tourists, according to Mason's Carolina Lifestyle Survey. Of 109 South Carolina cities that snapped up new residents, Myrtle Beach was the No. 1 city families moved to after taking the survey; Columbia ranked at No. 4; Summerville ranked at No. 5; Charleston ranked at No. 8 and Mount Pleasant came in at No. 9.
According to the latest U.S. Census Bureau statistics, which compare the number of tax returns filed each year, South Carolina gained 59,332 residents between 2006 and 2007, a figure Mason said is an underestimate.
Mason said the popularity of the Carolinas as an in-migration state is directly connected to the tourism industry.
"It starts with a visit," Mason said. "We wouldn't have in-migration if we didn't have millions of people coming down here to play golf. The tourism industry is robust in South Carolina and is only going to get better. The wisdom of the Legislature this year allocated $31 million for tourism."
As the South and other desirable areas fill up with new residents, other states have the distinction of losing a large number of residents each year.
States that had 55% or more moves out are classified as high outbound states by the migration study. This year, the following states experienced the most moves out:
Michigan, 67.8%.
North Dakota, 67.2%.
New Jersey, 61.0%.
New York, 59.4%.
Illinois, 57.6%.
www.843Realtor.com
Nearly two-thirds of all moves, 61.6%, were to North Carolina, making the Tar Heel State the year's top migration destination. South Carolina was another top residential moving destination for 2007, nabbing 57.8% of all household movers.
Other states receiving the most inbound residents were:
Nevada, 59.4%.
Washington, D.C., 58.5%.
Oregon, 58.4%.
Alabama, 57.9%
The Carolinas to tourists or would-be residents, predicted that South Carolina will have 150,000 new residents this year and North Carolina will have twice that many.
Charleston emerged as the No. 1 most-preferred destination for tourists, according to Mason's Carolina Lifestyle Survey. Of 109 South Carolina cities that snapped up new residents, Myrtle Beach was the No. 1 city families moved to after taking the survey; Columbia ranked at No. 4; Summerville ranked at No. 5; Charleston ranked at No. 8 and Mount Pleasant came in at No. 9.
According to the latest U.S. Census Bureau statistics, which compare the number of tax returns filed each year, South Carolina gained 59,332 residents between 2006 and 2007, a figure Mason said is an underestimate.
Mason said the popularity of the Carolinas as an in-migration state is directly connected to the tourism industry.
"It starts with a visit," Mason said. "We wouldn't have in-migration if we didn't have millions of people coming down here to play golf. The tourism industry is robust in South Carolina and is only going to get better. The wisdom of the Legislature this year allocated $31 million for tourism."
As the South and other desirable areas fill up with new residents, other states have the distinction of losing a large number of residents each year.
States that had 55% or more moves out are classified as high outbound states by the migration study. This year, the following states experienced the most moves out:
Michigan, 67.8%.
North Dakota, 67.2%.
New Jersey, 61.0%.
New York, 59.4%.
Illinois, 57.6%.
www.843Realtor.com
Myrtle Beach SC 2008 Forecast bargain hunting time for buyers
Like many second home and vacation real estate markets Myrtle Beach attracts visitors from all over the east coast for its beautiful Atlantic beaches, and similar to many second home markets many owners have paid cash for their property immune to the national housing recession as a result.
But for those who want to sell or need to sell the Myrtle Beach market can be a tough place to be right now. Myrtle Beach has seen sales slow from the markets peak, and will see prices fall on average 8.2% in 2008, which makes it bargain hunting time for buyers.
Forecated by Housing Predictor
But for those who want to sell or need to sell the Myrtle Beach market can be a tough place to be right now. Myrtle Beach has seen sales slow from the markets peak, and will see prices fall on average 8.2% in 2008, which makes it bargain hunting time for buyers.
Forecated by Housing Predictor
John Edwards, Barack Obama, Hillary Clinton Visit area today
Former North Carolina senator John Edwards was in Florence and Sumter Sunday, where he met-up with a crowd of about 300 at Roger's Bar-B-Que and Seafood restaurant.
Edwards is scheduled to make appearances in Myrtle Beach, and Pawleys Island Monday.
Edwards says he is confident he will win the state's primary coming up at the end of the month.
He's hoping to appeal to black voters, who made up nearly half the primary ballots cast in 2004, when he won the state.
"Just because of having grown up in the south, first in the segregated south, then a south that was going thru a lot of change in my early years, I understand in a very personal way, the struggles that that African Americans have gone through," Edwards said.
Edwards also made stops in Hilton Head, Barnwell and Aiken yesterday, rallying supporters in his native state.
New York Senator Hillary Clinton, fresh off her victory in New Hampshire, was in Columbia Sunday, talking to supporters there.
Clinton addressed the African-American Presbyterian Church Sunday morning.
She later held a two-hour town hall meeting in the capital city, and had a sit-down meeting with a group of women at a bistro.
Democratic contender Barack Obama is also making his presence known in our area. His wife, Michelle, is scheduled to make appearances Monday in Florence, and Georgetown, where her grandfather was raised.
Edwards is scheduled to make appearances in Myrtle Beach, and Pawleys Island Monday.
Edwards says he is confident he will win the state's primary coming up at the end of the month.
He's hoping to appeal to black voters, who made up nearly half the primary ballots cast in 2004, when he won the state.
"Just because of having grown up in the south, first in the segregated south, then a south that was going thru a lot of change in my early years, I understand in a very personal way, the struggles that that African Americans have gone through," Edwards said.
Edwards also made stops in Hilton Head, Barnwell and Aiken yesterday, rallying supporters in his native state.
New York Senator Hillary Clinton, fresh off her victory in New Hampshire, was in Columbia Sunday, talking to supporters there.
Clinton addressed the African-American Presbyterian Church Sunday morning.
She later held a two-hour town hall meeting in the capital city, and had a sit-down meeting with a group of women at a bistro.
Democratic contender Barack Obama is also making his presence known in our area. His wife, Michelle, is scheduled to make appearances Monday in Florence, and Georgetown, where her grandfather was raised.
Sunday, January 13, 2008
Interest Rate down from last week and from 1 year ago
2008-Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.87% with an average 0.4 point for the week ending January 10, 2008, down from last week when it averaged 6.07% as well. Last year at this time, the 30-year FRM averaged 6.21%.
The 15-year FRM this week averaged 5.43% with an average 0.4 point, down from last week when it averaged 5.68%. A year ago at this time, the 15-year FRM averaged 5.96%.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.63% this week, with an average 0.5 point, down from last week when it averaged 5.78%. A year ago, the 5-year ARM averaged 6.03%.
One-year Treasury-indexed ARMs averaged 5.37% this week with an average 0.4 point, down from last week when it was 5.47%. At this time last year, the 1-year ARM averaged 5.44%.
“Because average mortgage rates have come down more than a quarter of a percentage point in the past two weeks, there has been a pickup in refinance activity as borrowers take advantage of the lower rates. For the first week of 2008, the Mortgage Bankers Association reported an increase in the refinance share of mortgage applications and the pace of overall applications, both at the highest levels in four weeks.”
The 15-year FRM this week averaged 5.43% with an average 0.4 point, down from last week when it averaged 5.68%. A year ago at this time, the 15-year FRM averaged 5.96%.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.63% this week, with an average 0.5 point, down from last week when it averaged 5.78%. A year ago, the 5-year ARM averaged 6.03%.
One-year Treasury-indexed ARMs averaged 5.37% this week with an average 0.4 point, down from last week when it was 5.47%. At this time last year, the 1-year ARM averaged 5.44%.
“Because average mortgage rates have come down more than a quarter of a percentage point in the past two weeks, there has been a pickup in refinance activity as borrowers take advantage of the lower rates. For the first week of 2008, the Mortgage Bankers Association reported an increase in the refinance share of mortgage applications and the pace of overall applications, both at the highest levels in four weeks.”
1 in 5 real estate agents sold to a foreign investor in the past year
Panden Rota, a Nepalese producer of fine rugs, is about to become a Manhattanite, the owner of a sumptuous apartment in the luxurious downtown neighborhood of Battery Park City.
His primary residence will remain Katmandu, but his new home will allow him to spend more time at U.S. showrooms that display his rugs and with a brother and sister in New York. "I looked at many places, and I decided that a Manhattan apartment will always hold its value," he said.
Rota is part of a growing wave of foreigners who buy second homes in the United States for work and play and as an investment.
Cosmopolitan cities such as New York and Miami have long served as second homes for affluent and accomplished foreigners. But the trend is growing. One in five American real estate agents has sold a home to a foreign investor in the past year, according to the National Association of Realtors.
The events of 2007 have made the United States much more affordable for international home buyers. Severe dollar declines against the euro and pound have made U.S. homes much cheaper for Europeans. But even foreign buyers without that sort of currency advantage are benefiting from sharp drops in housing prices at a time when problems in mortgage lending are keeping many Americans out of the market.
At the same time, many foreign real estate markets, especially in Europe, have experienced sharp increases in home prices.
The currency advantage is greatest for British citizens, given that each pound has been worth more than $2 recently; it was worth $1.96 on Friday. By contrast, the euro was worth about $1.48 on Friday, and the Canadian dollar in recent weeks has hovered near parity with its U.S. counterpart.
"At this point, the English are more actively looking in Manhattan than American buyers," said Ivan Hakimian of New York's Itzhaki Properties.
Mia Wilkinson, a transplanted Englishwoman who works for Rubloff Residential Properties in Chicago, deals often with British and other foreign executives transferred to the United States for a few years. "Before, people would stay in corporate rentals," she said. "But now these same people are turning around and buying properties."
Wilkinson, who has been in the United States for six years, has bought property in Chicago.
The expansion of foreign real estate investment also means that areas that once were not popular with international buyers are now receiving interest. Doug Aitkin, who works for North Carolina's World Trade Center, said the Research Triangle area, which includes the cities of Durham, Raleigh and Chapel Hill, is now getting inquiries from French and Scandinavian home buyers, a new phenomenon.
Constantine Valhouli, a principal with Boston's Hammersmith Group, which advises real estate developers, said foreign home buying appears to have varied drivers in different cities. In Boston, property purchases by foreigners are linked to the city's booming biotechnology and life sciences industries. In addition, Boston venture funds are drawing large numbers of German, Swiss and Irish workers, some of whom take advantage of favorable dollar rates against the euro to help buy some real estate.
In Los Angeles, demand from wealthy South Koreans for attractive condo towers and mid-rise buildings has helped revitalize the once forlorn downtown neighborhood, said Johanna Gunther, a senior vice president with the Ryness Co. there. "Downtown has not been an attractive urban residential market until recently, but Korean demand has been a big factor in the change," she said. In recent years, the South Korean government has loosened restrictions on foreign exchange transactions, facilitating a large rise in Korean purchases of U.S. properties.
The National Association of Realtors found that 7.3 percent of the houses sold in 2006 in Florida went to foreign buyers. Miami, in particular, is a magnet for buyers from throughout Latin America and Europe, helping to mitigate the fallout from the area's housing slump.
Despite the new waves of foreign buyers in many U.S. markets, few suggest international investors by themselves can offset the nation's housing crisis, brought on by the failure of many subprime mortgage loans. Hammersmith Group's Valhouli stressed that the fact that international investors are helping to prop up some troubled housing markets only emphasizes the level of stress in residential real estate.
"Relying on foreign real estate investors is fundamentally as risky as relying on subprime mortgages," he said, noting that both phenomena distort demand and can conceal the depths of the problem U.S. home buyers and sellers face. "Foreign buyers aren't going to save the U.S. housing market."
www.843Realtor.com
His primary residence will remain Katmandu, but his new home will allow him to spend more time at U.S. showrooms that display his rugs and with a brother and sister in New York. "I looked at many places, and I decided that a Manhattan apartment will always hold its value," he said.
Rota is part of a growing wave of foreigners who buy second homes in the United States for work and play and as an investment.
Cosmopolitan cities such as New York and Miami have long served as second homes for affluent and accomplished foreigners. But the trend is growing. One in five American real estate agents has sold a home to a foreign investor in the past year, according to the National Association of Realtors.
The events of 2007 have made the United States much more affordable for international home buyers. Severe dollar declines against the euro and pound have made U.S. homes much cheaper for Europeans. But even foreign buyers without that sort of currency advantage are benefiting from sharp drops in housing prices at a time when problems in mortgage lending are keeping many Americans out of the market.
At the same time, many foreign real estate markets, especially in Europe, have experienced sharp increases in home prices.
The currency advantage is greatest for British citizens, given that each pound has been worth more than $2 recently; it was worth $1.96 on Friday. By contrast, the euro was worth about $1.48 on Friday, and the Canadian dollar in recent weeks has hovered near parity with its U.S. counterpart.
"At this point, the English are more actively looking in Manhattan than American buyers," said Ivan Hakimian of New York's Itzhaki Properties.
Mia Wilkinson, a transplanted Englishwoman who works for Rubloff Residential Properties in Chicago, deals often with British and other foreign executives transferred to the United States for a few years. "Before, people would stay in corporate rentals," she said. "But now these same people are turning around and buying properties."
Wilkinson, who has been in the United States for six years, has bought property in Chicago.
The expansion of foreign real estate investment also means that areas that once were not popular with international buyers are now receiving interest. Doug Aitkin, who works for North Carolina's World Trade Center, said the Research Triangle area, which includes the cities of Durham, Raleigh and Chapel Hill, is now getting inquiries from French and Scandinavian home buyers, a new phenomenon.
Constantine Valhouli, a principal with Boston's Hammersmith Group, which advises real estate developers, said foreign home buying appears to have varied drivers in different cities. In Boston, property purchases by foreigners are linked to the city's booming biotechnology and life sciences industries. In addition, Boston venture funds are drawing large numbers of German, Swiss and Irish workers, some of whom take advantage of favorable dollar rates against the euro to help buy some real estate.
In Los Angeles, demand from wealthy South Koreans for attractive condo towers and mid-rise buildings has helped revitalize the once forlorn downtown neighborhood, said Johanna Gunther, a senior vice president with the Ryness Co. there. "Downtown has not been an attractive urban residential market until recently, but Korean demand has been a big factor in the change," she said. In recent years, the South Korean government has loosened restrictions on foreign exchange transactions, facilitating a large rise in Korean purchases of U.S. properties.
The National Association of Realtors found that 7.3 percent of the houses sold in 2006 in Florida went to foreign buyers. Miami, in particular, is a magnet for buyers from throughout Latin America and Europe, helping to mitigate the fallout from the area's housing slump.
Despite the new waves of foreign buyers in many U.S. markets, few suggest international investors by themselves can offset the nation's housing crisis, brought on by the failure of many subprime mortgage loans. Hammersmith Group's Valhouli stressed that the fact that international investors are helping to prop up some troubled housing markets only emphasizes the level of stress in residential real estate.
"Relying on foreign real estate investors is fundamentally as risky as relying on subprime mortgages," he said, noting that both phenomena distort demand and can conceal the depths of the problem U.S. home buyers and sellers face. "Foreign buyers aren't going to save the U.S. housing market."
www.843Realtor.com
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