More and more, real estate is a global concern
Whether you agree or not, government plays a role in the housing market. From the Government Sponsored Enterprises, like Fannie Mae and Freddie Mack to the loans insured by the Small Business Administration, Federal Housing Administration or United States Department of Agriculture, the government does have a hand in the market.
Government's role in real estate is certainly not limited to the United States. The housing boom was, for the most part, a global phenomenon for those countries that allow the exchange of property. Other countries face their challenges differently, yet many the same as the U.S. Here are some tidbits we have gathered with regard to real estate in other parts of the world:
A housing recovery in Australia was spurned by massive flooding. This led to a slight recovery as government insurance paid for damages, allowing homes to be renovated or replaced with pricier homes:
"...the past month had shown "promising signs" of a recovery, fueled mainly by people buying property after getting rid of their flooded homes.
"Ironically, the floods are responsible for getting things going again."
"It's been six months now and many people have either received their insurance money, or received payouts from the government.
"They're flogging off their flooded property for cheap and then using the insurance money to buy a better house than they had before."
You probably would guess that China's government would be involved in real estate:
"Just last year, the government's land auction center in this sprawling city buzzed with activity, with investors fighting to buy plots in the town center and pushing prices to record highs."
Now, the center is eerily quiet, as moves by the national government to rein in the country's once-roaring property market have taken hold.
"The land market is cooling down so quickly - it's as if all the property developers vanished overnight," said an official at the department that handles government land sales for Changsha, a central Chinese city of 7 million.
"Now we have to go out and find buyers by ourselves. It is really a hard time," added the woman, who declined to give her name.
The city government in Changsha, once known for machine-making and now becoming a hub for China's TV and creative industry, has good reason to be nervous about declining land sales. Without hefty income from such sales, Changsha faces problems paying its bills, which include heavy debt-servicing."
"Mexico has long been marketed as the perfect retirement haven for American baby-boomers. It has excellent beaches and pleasant coastal towns. Property prices are significantly lower than in California or Florida. In 2006 and 2007, when the U.S. house price bubble was at its peak, many American developers started building luxury resorts and retirement communities.
"However, the massive new flood of American buyers never came. The drug crisis with its link to violence and organized crime turned buyers off, as did numerous stories of dubious titles and victimized property investors.
"The drop in sales prompted one Mexican senator to propose a revision of the constitution to allow foreigners to directly own properties in Mexico, instead of the current fideicomiso or bank trust system. If approved, this could significantly boost foreign demand."
In the U.S. we see small signs of a recovery in the real estate market. For news on the market in North Idaho, watch this space next week for the October statistical report.
Trust an expert... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.
Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.