Honestly, so much has happened this week since the Fed seized mortgage giants Fannie Mae and Freddie Mac, it is hard not to feel overwhelmed as we try to absorb it all.
Financial Sector in Crisis
In a matter of days, Lehman Brothers Holdings Inc., the fourth largest investment firm in the country, went bankrupt, Bank of America bought financially-ailing Merrill Lynch, and the government stepped in to save American International Group (AIG), one of the world’s largest insurers, with an $85-billion dollar bridge loan. 

International buyers who want to purchase second homes and investment properties are not restricted in any way from buying U.S. real estate.  But financing a real estate purchase may pose a challenge for international buyers.  In some cases, foreign nationals can also face tax implications when they decide to sell property in the U.S.

“Global real estate transactions can be complex, and international buyers need the support and advice of professionals who are well-versed and know all the ins and outs,” advises Brian Meyerowitz, a buyer’s agent with Florida New Homes Realty.  

First-time home buyers – did you know the government recently enacted a benefit to help you make your first home purchase? The incentive gives first time home buyers a federal income tax credit up to $7,500 for those who close on or after April 9, 2008 and before July 1, 2009. 

The U.S. real estate market is open to international buyers who wish to invest in vacation homes or investment property in the states.  And to many foreign nationals, the convergence of the weakened dollar, falling home prices and the vast selection of homes for sale makes it a great time for real estate investment in the U.S.

International buyers are setting their sights on Florida vacation property and investment real estate.   While 18 percent of real estate agents nationwide closed at least one home sale for international buyers in 2006, a whopping 65 percent of real estate agents in Florida sold second homes to foreign buyers during the same time period, according to the National Association of Realtors (NAR) Profile of International Home Buying Activity.

As lifestyle trends change, builders must adapt the floor plans, materials and amenities in their new home models to meet the needs of today’s home new home buyer. What are buyers asking for in new construction homes?

International buyers find U.S. real estate to be a good value for their money. While falling home prices and the weak dollar may have many Americans holding off on purchasing new homes, international investors are taking advantage of their increased buying power and the greater affordability and variety of available homes for sale in the U.S. real estate market.  In fact, foreign buyers account for a significant sales share of second homes in the U.S. according to the National Association of Realtors (NAR).

So if trying to time the bottom of the real estate market is not the best strategy, what should a home buyer evaluate before buying a new home?  Here are some considerations that can help you assess whether this is a good time for you to buy property.

New home buyers…if the dismal news on the housing market has you waiting on the sidelines or trying to time when we’ll hit bottom, you may want to rethink your strategy about buying a new home.
Timing the Market Bottom May Not Be Wise Home Buying Strategy
The fact is, even the economists have a hard time agreeing on when the U.S. real estate market will hit its low point.  Many financial analysts think we could experience at least two more years of depreciating home values.

Trying to time the market, be it the stock market or the housing market, is a difficult task - and depending on your local environment, it may be an unnecessary gamble. 

Will the economy, environmental concerns and demographics impact the size of new homes we build in the future?  Two recent surveys show that a downsizing trend in new home construction may already be underway.

In its home design trend survey released last week, the American Institute of Architects indicates that the depressed U.S. housing market, affordability and rising home costs are causing many Americans to rethink the size issue.   How much living space do we really need?
Home Buyers Put New Home Amenities Ahead of Size
In past years, more people buying a new home would focus on getting the most square footage for the money, according to Gopal Ahluwalia, National Association of Home Builders vice president of research.  But that’s not the case anymore. In an NAHB survey released in February, a majority of potential home buyers revealed that if they had to choose, they would rather build a smaller home with more amenities than the other way around.