Economists are predicting the Australian dollar to climb higher this year with the potential of reaching parity with the US dollar by year’s end. Some are even predicting it will surpass the US dollar in value. This has not happened since the currency was floated and is largely due to the value of Australian exports and the general state of the Australian economy relative to the rest of the world. Although this is great news for Aussies it’s a double edged sword as Australian real estate is also set to keep climbing, already being out of reach to many investors and young people looking to buy property.  The US is still reeling from the GFC with more fallouts occurring monthly. Unemployment is increasing monthly and the end is not really in sight. The rate of foreclosures around the country continues to climb. Although unfortunate news for many Americans, this will provide more opportunities for Aussie investors looking further afield for investment opportunities.

“The US median existing home price tumbled 28 per cent over three years to $US164,800 in January, the lowest in more than seven years, according to the National Association of Realtors.

Existing home prices probably will fall 12 per cent this year (2009) to a median of $US173,800, while the new-home median likely will tumble 8.7 per cent to $US212,000, according to a forecast on Fannie Mae’s Web site. Combined sales of new and existing properties probably will drop 0.7 per cent to 5.36 million, even with the federal tax credit, after plunging 16 per cent last year.” (excerpt from SMH 21 Nov 2009).

Never have all the ducks lined up so perfectly for Aussies to buy US real estate. Click here to find out more about buying US property.