US Property Market looking Very Buoyant for the British Overseas Investors
With the current 2 for 1 Dollar to Pound, real estate investment in the US is looking very favorable.
US property prices ‘now have an overwhelming advantage given the wide selection of homes available in many markets’, according to National Association of Realtors senior economist Lawrence Yun.
But many estate agents are saying the buyers’ market will not persist and are predicting US house prices should recover in 2008 with existing home sales picking up late this year and new home sales rising early next year.
With profit margins coming under pressure, homebuilders will limit new construction well into 2008, said Yun. ‘This should help the overall inventory level to move steadily into a more balanced state’.
NAR also expects existing home sales to total 6.1m this year and 6.4m in 2008, down from 6.5m last year. New home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05m in 2006. Housing starts, including multi-family units, are forecast at 1.4m units this year and in 2008, down from 1.8m last year.
Existing home prices are likely to rise 1.8 per cent to a average of £109,500 in 2008 after a 1.4% decline this year to £107,600. The median new home price should rise 2.2% to £120,700 next year following a 2.6 per cent drop in 2007 to £118,100.
’Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008’, said Yun. ‘Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first time buyers with a long-term view to test the housing waters’. The 30 year fixed rate mortgage is estimated to average 6.7% during the second half of this year, and fluctuate around 6.6% in 2008.
US property prices ‘now have an overwhelming advantage given the wide selection of homes available in many markets’, according to National Association of Realtors senior economist Lawrence Yun.
But many estate agents are saying the buyers’ market will not persist and are predicting US house prices should recover in 2008 with existing home sales picking up late this year and new home sales rising early next year.
With profit margins coming under pressure, homebuilders will limit new construction well into 2008, said Yun. ‘This should help the overall inventory level to move steadily into a more balanced state’.
NAR also expects existing home sales to total 6.1m this year and 6.4m in 2008, down from 6.5m last year. New home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05m in 2006. Housing starts, including multi-family units, are forecast at 1.4m units this year and in 2008, down from 1.8m last year.
Existing home prices are likely to rise 1.8 per cent to a average of £109,500 in 2008 after a 1.4% decline this year to £107,600. The median new home price should rise 2.2% to £120,700 next year following a 2.6 per cent drop in 2007 to £118,100.
’Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008’, said Yun. ‘Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first time buyers with a long-term view to test the housing waters’. The 30 year fixed rate mortgage is estimated to average 6.7% during the second half of this year, and fluctuate around 6.6% in 2008.
posted by Obelisk International at 10:29 am
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