There’s a lot of excitement in the United States because of how well the country has recovered from the 2008 recession. It is as though the recession never happened as the US economy for sure looks the healthiest economy in the world. If you’re looking to sell apartments in the USA then this is the best possible time to do so, as it is pretty much a seller’s market in the country.
Here are the facts – home prices are rising across the United States, and hitting record highs in Texas, Colorado, Wyoming, and New York. In fact, home prices have risen by 5.7% on an average in 2015 so far, which is quite stunning.
Already, economists are worrying about a housing bubble, but that does seem to be quite farfetched. What has helped matters is that mortgage rates are still at historic lows – just under 3.7%. This has made it easier for younger people and the newly married to buy their first homes.
Why do we think it’s a seller’s market in the USA? Well – in a buyer’s market, there is usually a six-month supply of inventory or more. In the United States, there is just a 4.6 month supply of inventory – which means demand is higher than supply. Good news for all sellers.
Buyers in the US want turnkey properties – which means they want properties where they need to do absolutely nothing, not even any painting. Buyers just don’t wish to do any work on their properties. As Budge Huskey of Coldwell Banker Real Estate says, “Buyers don’t want to assume any risk with properties that need work, particularly first-time buyers with limited cash resources.”
What’s also interesting is that nobody is talking about foreclosures. Foreclosures were common in the USA following the housing bubble burst between 2007 and 2010, but today, they have fallen to 4 percent, the lowest levels since 2006.
Ordinary buyers rule the US market today, not investors or speculators, who have been put off by the rising property prices. As Daren Blomquist of RealtyTrac explains “Today’s houses are getting less desirable for investors because the price points are going higher, so it doesn’t pencil out as much.”
Here’s more – it is actually cheaper to buy property than to rent a house. Property prices have not risen as much as the rents. In the US, renters spend 30% of their income on rent, while homeowners spend just 15% of their income on mortgage payments – this shows quite clearly why buying your own house makes so much more financial sense than renting one.
Fannie Mae and Freddie Mac have stepped on the accelerator and introduced new lending programs that have made it possible for people to own homes with down-payments of just 3.5%. The cost of mortgage insurance has been reduced by the Federal Housing Finance Agency by half a percentage point; this saves an average homeowner around $900 per year. No, it’s still not as easy to get mortgage as it was in 2006, but a lot easier than it was a couple of years ago.
Finally, homes in the United States are greener and eco-friendlier than ever before. Small is in, big houses are out of fashion. The Millennials are environmentally conscious buyers and want to leave a smaller carbon footprint with their homes. So, a lot of things are changing in the USA, and they are changing for the better. There is no question that the United States is the world’s healthiest housing market today. You’re looking to sell apartments in the USA, you should have no trouble getting a great price for them.