House Market Recovery
Evidence is now accumulating that the housing market is starting to recover as prices rise & sales increase. Home builders are clearing lots and building properties faster with some selling above the asking price and before they even go on the market.
The widely respected S.&P./Case-Shiller index reported recently that sales prices for existing homes rose in April for the first time this year.
The National Association of Realtors reported that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.
The combination of rising rents and low rates on home loans is persuading both renters who want to own their own property and investors to buy property. Also due to low prices and the relative weakness of the dollar, international buyers continue to identify the U.S. as a desirable place to own property and make a profitable investment. The total residential international sales in the U.S. for the past year ending March 2012 equalled $82.4 billion, up from $66.4 billion in 2011.
Low house prices, a good inventory condition and increased buying power with today’s exchange rates help attract international clients. International buyers bought homes throughout the country, but four states accounted for 51 percent of the purchases – Florida, California, Texas and Arizona. Many purchase property as an investment, vacation home, or to add diversity to their portfolio.