After the recent reports of stabilisation and growth witnessed by the UK property market in recent months, the property market in US has also shown signs of improvements for the first time in many months.
Property buyers and investors in the US will be finally relieved from the improvement which is one of the first good news in US property market in the last two years.
For the first time in many months, the residential property prices in US have witnessed its first quarterly gain in the last 2 years. In fact this is the first gain in the US property market. Property analysts and investors in US are seeing this as the first sign that things are finally looking better for the world’s largest economy which also happens to be the worst hit by the recent financial crisis experienced worldwide.
According to property market results released for the month of July, published by Clear Capital, one of the leading Valuation and Intelligence websites in US, overall property prices in US have increased by 1.7% in the first quarter of the year. The property market study provides a good look at U.S. house price environment across all levels i.e. national, metropolitan and also local levels.
The report shows that some parts of the country have witnessed a strong surge in prices while some have lagged behind. The Midwest region of US leads the way and has shown the maximum price increase of 5.3 %. House prices in Cleveland have increased by 19.6 per cent overall, in spite of Cleveland being one of the worst affected cities in relation to foreclosures. All in all the overall US property market especially in the residential sector has shown an overall improvement in this quarter. Such an increase in house prices would have seemed far fetched only a few months ago. It is little surprise that the report is a cause of celebration for the US property market.
In the South of US, property prices have also shown improvements and the property prices have increased by 2 % from the previous quarter.
Property analysts, investors as well as home owners are encouraged by the first quarterly increase in three years.
There are many factors responsible for this growth in prices within the US property market. First time home buyer incentives and increased investment activity are some factors that have contributed to the national increase in US house prices.
In spite of the first quarterly overall price increase in US property prices, some parts of the country continued the downward trend in falling house prices. Las Vegas and Orlando was surprisingly were some of the cities where house prices continued to decline by 12.4 % and 9 % respectively. In spite of being popular with tourists, this came as a surprise to many.
In California that was significantly affected by the economy over the last two years, the real estate market has finally started to show positive signs. According to a survey conducted by the California Association of Realtors, the current quarterly period has seen a 27 per cent rise in residential property sales in the state.