Averted fiscal cliff boosts US property markets
Property prices in the US will continue to increase throughout 2013, according to a report by The Federal Home Loan Mortgage Corporation (Freddie Mac).
Prices are predicted to rise by 2-3 % in 2013, with long term mortgage rates staying near the record low in the first half of the year. Prices are predicted to rise in the second half of the year; however rates are expected to remain below 4 %.
The report indicated that in the past few months, construction projects, sales and property values have risen indicating a positive strengthening of the market.
The growth marks the end of a year of concerning market figures, which drew concern from analysts over a looming shadow inventory and further economic depression.
Instead, the market has returned to its traditional role of supporting economic recovery, and is now contributing to encouraging GDP figures.
Freddie Mac’s findings have been boosted by market analysts Zillow, who revealed a growing interest in the market from overseas investors. Many areas in the USA - such as San Francisco, Las Vegas and Arizona - are now classified as sellers’ markets, and properties in these regions are being sold within days of coming onto market.
Colliers International - the global property investor – joyfully speculated with the findings, suggesting the USA will become the most popular location for overseas property investment in 2013, followed by Asia and Western Europe.
In their report: U.S. Retail Market View (Q3 2012), CBRE – the real estate services company – found a myriad of positive market indicators supporting the recovering property market.
Rental availability rates have dropped, pushing up rental prices in prime retail markets spaces. Increased property investment and massive e-commerce sales growth - also cited in the report – demonstrated a change of direction for the US market. (See below)
Commenting on the report, a CBRE spokesperson said: “The U.S. retail sector continued its slow and steady climb from the depths of the recession during Q3 2012, fuelled by increasing demand for prime space–especially for High Street retail locations in coastal markets.
“With a limited pipeline of construction, demand for prime retail space outstripped supply, driving availability levels downward and increasing asking rents in key markets during the quarter.”