All the economic figures point to a buoyant year for the US economy in 2015. This year’s strong employment and financial growth will also boost the US property market, forecast to grow significantly. Property experts have highlighted ten areas for particularly strong activity in 2015 and Houston features as one of them.
Last year saw the return to economic recovery in the US and marked up the best employment and GDP growth figures since 2008. 2015 is fully expected to follow suit and analysts predict the US will be the global ‘powerhouse’ during this year. This buoyancy extends to the US property market where there are now sure signs of recovery and a return to stability.
In their ‘Top Ten Housing Markets to Watch in 2015’, Realtor.com pinpoints the best cities in the US with strong housing growth, affordable prices and fast-paced sales in 2015. There’s a surprising mix featuring Los Angeles, Washington and Atlanta plus a Texan city where the property market is expected to continue to boom this year – Houston.
Realtor.com reports that Houston isn’t is a surprise addition to the list – it was a high-flying performer for property in 2014 and this is forecast to continue during 2015. The market for property in Houston ranks as a “favourite for household growth, employment and volume of home sales”. The increases in these parameters are based on the energy industry in Houston driving the city’s economy and fuelling expansion and job creation.
Realtor.com states that Houston will set a new employment record in 2014 and that the job market is expected to grow by 4 per cent this year. Although Houston property remains affordable, house price increases during 2014 have made the market less accessible, particularly for first-home buyers and new arrivals in the city. This factor will be a major driving force behind pressure on the Houston rental market, already struggling to keep up with demand.
In countrywide terms, Realtor.com expects to see sweeping improvements in the US property market. With economic recovery in full swing and strong job creation, home sales are expected to grow by 8 per cent this year and the report expects “the stock of exisiting homes to be lapped up quickly”. US property prices are forecast to experience an average growth of at least 4.5 per cent in 2015. This together with a “shoot up” in mortgage rates, home affordability will decline by 5 to 10 per cent leading to a preference for rental properties.
Source: Realtor.com, International Business Times