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Wednesday, November 5, 2014
Booming US Housing Markets
Wednesday, November 05, 2014
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As the housing recovery continues this year, some new real estate markets are starting to get more attention. Americans are stepping up purchases as more homes are being put up for sale. A fall in mortgage rates and sustained job gains since the start of the year has unleashed some pent-up demand.
Since the start of the year, home builders and tenants in several markets across the nation have been reporting that traffic and buyer interest have increased. Even if the mortgage rates rise a little in the upcoming months, the boom in the housing market should continue.
The following are the most promising housing markets in the US:
Colorado’s hot housing market is putting investors in a prickly position of having to decide how much they should pay for a real estate – even if it translates to paying more than the current price. And the timing of cheap mortgages along with a slim inventory that is unable to meet demand has created a seller’s market, where multiple investors are making bids for a single home. Smart investors are trying to be the early bird to gain in on profit from resale.
In Denver especially, the housing market is healthier. Single-family home sales made a new record. Sales of condos and hometowns (attached homes) increased by 23 percent according to the latest data available compared to 2012. An influx of young-families searching for alternatives to the most-expensive coastal areas is also fueling the real estate boom.
What’s working for Denver is that it is less costly than New York and San Francisco, and at the same time it has a diverse industry that has been showing promising growth – technology, mutual funds, natural gas. Denver is now a mix of city and sky, and has become a vibrant downtown.
According to the data released by Florida Realtors, Florida’s housing market reported higher median prices, an increase in inventory, more closed sales, and more new listings last month. Single-family homes statewide closed sales totaled 20,792 in September, 2014, an increase of 13.5 percent from the September 2013 recording.
With the increase in home prices, more Florida homeowners are getting ready to sell or rent out their homes. Conditions are ideal for buyers to find or rent their dream homes, apartments and condos. It may be important to take quick action, keeping in mind that the rise in sales volume will bring down inventory levels.
In Orlando, new home construction activity for the past 18 months has led to an increase in retail pricing. A glance at the apartments for rent in Orlando indicates several new properties have been invested in and put up for rent in recent months. People are moving to the city and jobs are increasing, so new properties being bought and put up for rent is benefiting both the renter and the investor - the increase in rental properties means people moving to Orlando have more rental options and price variants, while the investor has more renters to target.
In Texas, Houston took the enviable ranking as the hottest market to match in a report released by the US commercial real estate industry. Partner and US real estate advisory practice leader Mitch Roschelle said that when there is economic boom, there is job creation, and when there is job creation, there is demand for everything real estate.
In the city, expectations of all real estate are high. The annual study titled ‘Emerging Trends in Real Estate’, based on interviews and surveys with more than 1,000 real estate developers, fund managers, investors and industry professionals revealed that expectations for all types of Houston real estate are high.
The city was also highlighted for the growth in its urban core. Historically, it has been identified as having strong suburban growth. The prominent of Houston in the report is also representing an increase in investor activity and interest in markets outside the prominent coastal areas like New York, San Francisco and Los Angeles.
For those thinking about investing in the golden state would be pleased to know that the outcome of the 2014 forecast released by the California Association of Realtors looks promising. The 2012 forecast was projected to deliver 2.1 percent less home sales, but this year should see a 3.2 percent rise, also overcoming the deficit of the passing year.
The rise comes in anticipation of a 6 percent increase in medium home prices, which will give homeowners more incentives to sell and investors to buy profit as well as rent it out for profit. Buyers who were previously competing with investors are also returning from the sidelines, so once again, a strong demand for ownership is expected.
The investor appetite is projected to become more subdued in 2014 as home prices increase. If you were previously in the market for property and were constantly overrun by hungry real-estate investors, the future holds more promise.
Seattle’s real estate has held firm in the aftermath of the housing collapse in 2008, to date. Home prices have only slightly dipped last year while real estate was struggling elsewhere, but the Seattle housing market has made a surprising comeback this year. A thriving local economy has played a major role in driving the city’s property resurgence. Business giants like Amazon and Starbucks have their headquarters in the Seattle area, which is also driving investor interest.
Wealthy buyers are also showing interest in the market as luxury real estate offered by the Seattle area is being considered as a safe investment. Foreign buyers are also playing a part in increasing the sales at the higher end of the market.
Further, Politico revealed that more than a quarter of households in the country are made up of just one person, a 7 percent rise from 1970. Seattle has reshaped this trend and micro housing is now on the boom in this area. In fact, the country’s fastest growing population is the one that invests in micro-housing.