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USA Property Market
Aston Lloyd & Partners:USA Property Market
The real estate market in America is huge and diverse. Everyone can find the property of their dreams. One of the most significant trends that have developed in regard to real estate in the United States in the past twenty years revolves around vacation property. In the 21st century, a growing number of people within the United States, as well as an increasing share of property owners from abroad are investing in vacation and holiday property. Today's housing boom differs radically from its predecessors. For instance ihas been much more robist and longer lived as well as bigger. House prices are still more than twice the level of 1991, when the boom began. Even after the recent decline, June's rate of home sales is 40% above the 20-year average. Much of the recent increase has been driven by an unprecedented flood of cash into U.S. capital markets. Global demand for U.S. mortgage bonds, competition among big national lenders and the advent of exotic loans have made it easier than ever to borrow money to buy a house, and to turn rising home values into cash. In March 2007, new home sales were up despite cold weather and pessimism caused by rising energy prices. The housing market overall is stabilizing according to many experts. March new home sales on an annual pace climbed to 858,000, up from 836,000 in February. The average new home price rose to $330,900 from $311,500 and $326,000 in January and February, respectively. The NAR (National Association of Realtors reorts that the average price for an existing U.S. home rose to $263,500 in March from $257,300 and 260,100 in January and February. However, in california Now, fewer buyers can afford homes, and many speculators are trying to clear out of a cooling market. The result is an excess supply of some 1.5 million units, in a market where 8 million homes are sold in a good year, according to a new estimate by Goldman Sachs, an investment firm in New York. That tally includes the stock of homes listed as being for sale, plus an adjustment for the high number of canceled purchase contracts for new homes. It takes into account that there has been a shrp increase in the number of vacant existing homes. There has been a great increase in the number of unoccupied homes which has reched a record 2.7 percent of all homes that are normally owner occupied. The upshot: Builders may need to cut the pace of construction even further, and prices for homes may face continued pressure. A person interested in making the purchase of any kind of real estate in the United States needs to give serious consideration to engaging the assistance of a qualified and licensed broker or of an equally qualified real estate service that has been established to service the needs of those people seeking to purchase investment, residential or vacation property within the U.S