In October, we mentioned that foreign investors were becoming more active in the purchase of U.S. real estate due to the strong euro and the weaking U.S. housing market.

A recent alert from RightMove in the United Kingdom gives us the perspectve from the Brit side.

Despite the credit crunch and worsening economic conditions in the UK, 1.8 million enquiries from Brits were registered wishing to purchase property abroad in January 2008, the highest number ever recorded.

France narrowly beat Spain to the top of the list as the UK’s favourite overseas destination. However, the big mover was the USA which, fueled by falling house prices and a weak dollar, recorded a 42% increase in enquiries compared to January 2007.

First time buyers are increasingly purchasing abroad in an effort to get on the property ladder, and investors will continue to snap up bargains wherever the UK property market is faltering, which would explain the increased interest in the USA.

By some forecasts, the euro is expected to reach a 1 for 2 exchange with the dollar later this year. That’s an increase from 1 for 1.5 which would be a huge advantage for foreign investors looking for U.S. properties.

Imagine buying the Chateau D'Ellen we have listed in Pleasanton ($6.995M) for a 50% discount!

With new home construction still suffering, the foreclosure rate still climbing and the dollar continuing to fall – the time is right for foreign investors to buy U.S. property – and they are.

San Francisco is seeing more activity than the East Bay, but we are hearing more and more reports of foreign investors in the East Bay.

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