US Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. […]
This summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, […]
US Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. These investors, usually purchasing property in excess to 2 million, come from countries such as China and those in the Middle East.
The process is simple. These individuals run money through foreign companies who open accounts in the Caymans with the said funds and then purchase property here in the states. The crackdown started in New York and Miami but has quickly expanded to Los Angeles.
This new campaign puts a new responsibility on more than just the title attorney. Those who need to pay attention are the real estate agents, bankers and the attorneys involved in any of the transactions dealings. They are responsible for knowing where the buyer’s funds originated. This is an often overlooked task, but one in which they will be held more accountable. Potential criminal charges are at stake if found to be a part of the money laundering scheme.
No one knows for sure what the long-term impact of this new Department campaign will be, but in the short-term, the high-end market has softened. There has also been a slowdown in the influx of foreign real estate investors. This might just be the results of Brexit or the fact that countries have been trying to curtail the outflow of money on their end.
Although it might be too early to tell, one thing is for sure, the US Treasury Department is coming down harder than ever on money laundering, and all members of the seller’s team must be part of the solution.
This summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, a continuation of the low-interest rate environment, and low existing inventory the housing market climbed.
According to the Commerce Department, sales have been showing an over 30% increase each month this summer when compared to the same months last year.
At the same time, the supply of homes entering the market continues a downward trend. The average has been about 4.5 months at current sales prices. When compared to the average benchmark of 6 months in a balanced market it is evident that demand is high.
Houses priced between $200,000 to $399,999 remain the bulk of total housing sales, while transactions of homes priced below $150,000 or higher than $750,000 increased as well.
Matthew Pointon, a property economist at Capital Economics, said that it would not be surprising to see price hikes if builders do not speed up production if the high demand, low inventory and the persisting high sales of new homes continues.
Most economists agree that with new homes starts slowing the market will remain tight, and sales will naturally slow. With this combination, it will be easy to see the theory of supply and demand in full effect.
The Complications Of Foreign All Cash Deals
NewsUS Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. […]
Sales of new homes skyrocket to 2007 levels
UncategorizedThis summer not only saw record-breaking heat across the nation, it saw new home sales reach levels not seen over the past nine years. Thanks to a surge in demand, […]