USA ranks 12th most profitable housing market
A worldwide survey of the best (and worst) housing markets has been released by some economic boffins in a library somewhere and the USA ranks 12th overall.
Quarterly Rank: 12
Quarterly Price Change: 1.3%
The U.S. was mired in recession for most of 2008, spelling doom for its housing market. Vacancy rates skyrocketed, with Los Angeles reporting a rate of 10% at the end of last year. But the U.S. is starting to see signs of recovery. Asking prices in several housing markets across the country increased in August, particularly in San Jose and San Diego, which experienced jumps of 1.7% and 1.3%, respectively. What’s more, inventory levels declined in 22 of 26 markets, with San Francisco reporting a healthy contraction of 5.1%.
These findings marry up to our own. All the markets we invest in, Detroit, parts of Florida like Orlando, Naples, Kissimmee and others have all shown signs of recovery. Prices are stable and in many areas competition for investment property is driving values up.
Bottom line, whilst values are still extremely low and rental yields are high investors will continue to buy.