European buyers in L.A.

One of the trends we’ve seen lately – particularly with high-end properties – is increasing interest from foreigners in buying California real estate. In the last month alone, my office has been working with serious high-end buyers from Switzerland, England, Germany, Croatia and Greece. With the weak dollar, falling prices and many American buyers and investors keeping their money away from real estate, Europeans have sensed a buying opportunity. While many Americans are still waiting to see if the real estate market will still fall further in 2008 (and it might), buying now may be a smarter play for Europeans. Chances are that even if housing prices decline slightly more, they might not decline enough to compensate for the tremendous advantage the Euro has over the U.S. dollar right now. That means the Euro may buy you more now than it will 6 months or a year from now, even if prices decline. There’s no guarantee. But there’s also no denying that prime real estate in Los Angeles and elsewhere in California is at a deep discount for Europeans.