Us Housing Market Looks Like Turning Corner
News Posted On: 23 December 2011
Sales of existing homes in the US are now 34% above the cyclical low point of mid 2010 according to the latest data from the National Association of Realtors.
Experts are putting the growth down to surging investment in rental properties as the sector continues to experience a boom, Americans are foreigners from around the world in snapping up distressed and bargain properties to rent out.
And this is not the only positive indicator that 2012 might be the first year of a tacid recovery in the American property market.
Private investors from around the world have been flocking to places like Florida to snap up discounted properties for the last 3 years or more, and growing steadily in their numbers. As the rental sector began to see strong growth at the start of this year institutional investors began buying up entire apartment buildings to do up and rent out. Now this trend has went further still as they are now having new blocks constructed.
This led to a whopping 180% year on year growth in multifamily starts in November. While construction levels are still low by historical averages, construction is currently seeing its best performance since April 2010, and this is now without the wad of government stimulation.
This is good for the housing market and for the wider economy as well. The ailing construction industry is a massive employer when times are good, and the US economy could really do with getting this sector back in business and employing again.
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Written by Les Calvert+
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