Prices have been rising steadily but is there a real risk of a US property market bubble? The answer turns out to be a resounding no.
Figures released for US property prices in August point to another rise and bring the market close to its peak reached in July 2006. Prices went up across the board with some markets showing considerably higher increases.
The latest predictions from Freddie Mac point to 2016 as the best year for property in the US for ten years. Bases its figures on solid job creation, continual household formation and steady price rises pushed upwards by demand, the federal mortgage corporation believes the US property market is set for an excellent year. BRIC Group explains why.
As well as its year-round sunshine, theme parks and long beaches, Florida is famous for its favourable business climate. In this year’s ranking, the Sunshine State rises from fifth to fourth position to become one of the top five best proving that the Florida Business Climate stands out among the rest.
Latest statistics for new construction reveal that the US property market is still a long way from fulfilling demand. The number of new homes entering the market sits at rock-bottom levels while demand for property continues to soar across the country.
Two recent surveys related to US property point to a market where homeownership is falling steadily in favour of rental, particularly among the first-home buyers. While the number of Americans who own their own home is at its lowest quarterly level since 1993, those who rent are at their highest level for 20 years.
Property investment at global levels continues from strength to strength this year despite economic uncertainty over the Greek bailout and the Chinese stock exchange crisis. Transaction volumes rose by 9 per cent in the second quarter of this year with the US occupying the position as favourite investment destination. Demand was particularly high among investors for rental apartments in the US.
More buyers, increased sales and higher prices are set to characterise the US property market for the rest of this year. With the job market booming and the US economy growing, experts predict the housing shortage will continue at least until 2017.
The Florida property market continued to show solid and sustainable growth in March, a month that notched up the state’s 40th consecutive rise in median houses prices. Closed sales also boomed while inventory levels dropped nearly 10 per cent.
Just 12 per cent of the US population live in apartments, but recent research on this market shows that its impact on the economy is far more wide-reaching than envisaged. The pressure on supply from strong demand also makes apartments one of the most attractive US property options, particularly as buy-to-let investments.