According to the US Department of Commerce report, sales of new single-family houses in the United States decreased annually. Despite analysts predicted 622 thousand of sold new houses annually, final data showed the result 607 thousand houses. Comparing with January 2018, sales fell by 4.1%. What should we expect from the American real estate market in 2019?
2007 Mortgage Crisis
The reason for this crisis was the accumulation of mortgage obligations by banks on dwelling purchasing. All this happened in the USA, but consequences had an impact on the whole world. Housing prices were actively growing until 2006, but then began to fall, and interest rates on mortgage loans started to rise. People could not pay mortgages and a number of unfulfilled loan obligations began to grow.
The most famous stock index S & P 500, which reflects the development dynamics of the 500 largest US companies, fell by 45%. Accordingly, property prices fell by 20%. Many people were left homeless. The result of the real estate crisis was terrible.
The US Housing Market
Today, the American real estate market is not as positive as some people think. Gradually increasing housing costs and high mortgage rates make such deals at least less attractive. However, analysts expected an improvement of purchasing indicator by 3.5% – 647 thousand houses in 2019. Housing prices have increased by 2.5% (323 thousand dollars). According to statistics, new buildings make up about 10% of the US housing market. It is necessary to check indices of US housing prices, pending sales, building permits for a proper understanding of American real estate market dynamics.
Investing in Housing Property
The United States real estate market remains an attractive way to invest. A big influence on attractiveness makes living standards. It is important to remember that the economic situation in the United States is affected from outside, especially from Western Europe and South America. Nevertheless, investors acquire assets in the United States. Therefore, this question is always relevant.
Over the past 10-12 years, commercial trends set new world pricing records, then “depreciating” entire cities. Traditional top ten leaders in real estate investments are formed by the largest cities as New York or San Francisco. However, this market is high costed so it is not easy to get used. Finally, it is very important to know the main trends and moods of this vast and so diverse sector.