The recovery in the US property
market appears to be well under way, with house sales once again increasing in
July. Low mortgage rates and
cheaper homes are helping first time buyers to get onto the property ladder but
it is luxury homes that have seen a huge upturn in sales over recent weeks.
Keep reading to learn more about
Americaââ¬â¢s improving property market.
Sales and prices of American property rise in July
The Kansas City Star reports that sales of previously occupied homes
rose 2.3 per cent in July from June.
The National Association of Realtors figures also that sales have
increased by over 10 per cent over the past 12 months.
John Ryding, an economist at RDQ
Economics, said that the “evidence that the housing market is recovering
… is fairly clear across a wide range of reports.ââ¬Â
Housing “is now becoming a
small positive for the economic outlook.”
A leading index found that house
prices in the US increased 2.2 per cent from April to May ââ¬â the second straight
increase after seven months of flat or declining prices. Despite recent gains, prices remain
around a third lower than they were at the peak of the housing bubble in 2006.
However, while homes at the lower
end of the market may be more affordable there has also been a large increase
in the sales of luxury homes. The
newspaper reports that ââ¬Ërising demand for luxury homes is contributing to
higher sales.ââ¬â¢
Sales of homes that cost $1
million (ã630,000) or more rose by 18.6 percent in July, the Realtors’ group
said.
Nick Marr, director of overseas
property specialist HomesGoFast.com said: ââ¬ÅWhile house prices have fallen,
record low mortgage rates are also a contributing factor in making homes more
affordable.
ââ¬ÅAccording to mortgage buyer
Freddie Mac, the average rate on a 30-year fixed-rate loan in August was 3.62
per cent. Three weeks ago, the
rate was 3.49 per cent, the lowest since long-term mortgages began in the
1950s. So, if youââ¬â¢re looking to
buy a property in the US, they have rarely been more affordable.ââ¬Â
