The U.S. housing market is still in decline.
The number of repossessions continues to increase and real estate prices continue to fall and it is far from being the end according to famous analysts.
Real estate foreclosures: record in July 2014
About 360 150 U.S. homes were seized in July 2009, an increase of 7% compared to repossessions of June 2009, where peaks had already been achieved. Real estate in the United States is so far from getting out of the real estate crisis in 2014. The rise in repossessions stood at + 32% in annual comparison from 2009 to 2014.
Thus, on all households who have contracted a loan to buy a house, 1 355 would today be proceeding repossession. The most affected in the USA States are Florida, California, Nevada and Arizona.
Sales of new homes in the USA are at the lowest
The real estate market is completely devastated in the United States, there are so many properties for sale at cheap price that sales of new homes have collapsed heavily over the last few years.
Real estate prices in the United States
The bulk of the US housing bubble has deflated, but the magnitude of the crisis suggests that this decline in real estate prices is far from over.
If we compare the curves of the United States and those of Europe, prices of houses and apartments in the USA are less than in France and Germany coupled and that there is a lag in time between the explosion of the real estate bubble in the United States or England and the deflation of the housing bubble in Europe. This portends of what awaits the real estate market in Europe in next months and years to come…
Global Trends for 2015
Synthesis of trends in real estate in 2014
It is too early to know the total decline in prices of real estate in 2014. Official figures of the give final values that statistics laid down in the first quarter of 2014. At that time, housing prices fall across 1.7% over one year (-1.4% for apartments,-2.1% for houses).
In the 2nd quarter, figures were considered as semi-final and may therefore still be modified, real estate professional’s notes an evolution of -1.3% over one year with nearly equivalent variations for the apartments and houses (respectively-1.4% and-1.6%).
Third-quarter figures are only provisional and as they are often fixed in previous publications (almost always downward), it is not appropriate to mention them for the moment. All that we are seeing is that this trend of reduction of prices in current dollars continues with a greater pace for apartments than for homes on these two quarters. It is now the best time to buy homes for sale main line pa.
However, this is not all! Quite the contrary. To properly understand this cycle, buyers should also take into account the impact of other factors that weigh on property prices. During this same period, borrowers have not benefited from the same conditions of funding. Indeed, borrowing rates fell over this period of 179 basis points. This is equivalent to a decrease in the price of 12.3% according to figures of the Housing Credit.
It was therefore a reduction of prices by 6.1% as well as an improvement on the interest rate which is equivalent to a down price of 13.9%. Either an overall decline of more than 19% in less than 2.5 years!
Nevertheless it is still far from returning to levels accessible to the average american revenues as shown in the last curves of James Trish. After reviewing things that change for real estate in 2014 and the impact it could have on the market, we will return on the forecast for property prices in 2015, as well as the evolution of mortgage rates.
Will prices continue to drop?
There are no major changes compared to last year, who can know that these last years of flipping real estate market will stop there and prices will go upward in 2015. The deflationary economic environment with high rates of unemployment and income after tax which decrease every year suggests a real estate bubble deflation of this huge lawsuit that we experienced in the early 2000s.
In addition, the sharp increase in taxation on unused land possession causes massive property sales, we should even expect an acceleration of these price declines. Indeed, the speculation could take a cost. But it is one of the main causes of the high prices.