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USA Overseas Property Update 2016


USA Overseas Property Update 2016

Things look good in the US property market in 2016, as the economy is doing better than at any point in the last 5 or 6 years, the job situation is as good as it can get and people have more money to spend in general. So there’s something for everyone, regardless of whether you are trying to buy property USA or sell property USA. Here are some of the trends to look forward to in the US Property Market in 2016.

It’s back to how it used to be…

Remember how great things were to be in the US in the past? Yes, we are back to that. Home sales are just as high as they used to be 10 years ago; home prices are growing in a healthy manner. This is a relief considering how bizarre the trends of the past decade have been in the US. People are no longer selling their homes on distress sales and construction activity is back to normal levels. Things look good in the US real estate market for sure!

Millennials emerge as serious home buyers…

Millennials – young men and women between ages 25 and 34 are going to emerge as serious homebuyers in 2016. With the job situation being better than it’s been for many years, Millennials have more money to spend, and will be major players in the American property market. We expect a lot of homes to be sold to first-time buyers.

Gen Xers and Baby Boomers will be both buyers and sellers…

Gen Xers and Baby Boomers will be heavily involved in the market as both buyers and sellers. But there’s a difference. Gen Xers are at the peak of their earning power and will look to sell an existing home and upgrade to a bigger house. Baby Boomers won’t have children living with them anymore, as their kids will have moved out and started their own independent lives. So you can expect Baby Boomers to look to downgrade to smaller homes and plan for a healthy retirement.

High-end market to be affected by high mortgage rates…

The US Federal Reserve raised interest rates by 0.25% a couple of months back. Now, the Fed rate hike may not have been much, but it comes after a long time of low interest rates, so we expect more rate hikes in the future. This is going to raise the mortgage rates for sure. Higher mortgage rates will not make much of a difference to buyers at the lower end of the spectrum, but for high-end buyers, this is certainly very significant and may cause them to reassess their plans.

Rents will rise faster than home prices…

A lot of experts have observed that the cost of rental housing in the US is rising to unmanageable levels. Rents are too steep in most cities in the US. Around 85% of the rental market is beyond the reach of 30% of renting households, which is not a healthy sign at all. But while home prices are rising in a healthy way, rents are increasing far too fast for anyone’s comfort. Expect a double digit growth in rents in 2016 in many cities, especially in New York.

Best year to sell…

2016 is a great year to sell a home in the USA because supply is tight and the number of property transactions is higher than ever before. Prices are expected to grow in a healthy way, not too fast, so there’s no point in delaying a sale hoping for a much higher price in 6 or 12 months time. If you’re looking to sell a home in the US, this is the time to do it.




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