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The US housing market is going from strength to strength

Monday 31st October 2016

Written by Roy Weatherby, The Overseas Investor

Despite the fact that the economy in the US has recovered at a pace that was slower than expected, the housing market is continuing to gather momentum. The seasonally-adjusted national home price index increased by 4% throughout the year until the second quarter of 2016.
A thorough analysis of the US housing market by Global Property Guide saw that house prices rose by 1.895 throughout the last quarter. In fact the purchase-only US house price index increased by 4.34% during Q2 2016 and it hardly changed during Q1 2016 when compared to the previous quarter.
In all of the major cities in the US, house prices continue to rise with Portland experiencing the largest increase of 11.4% year-on-year during Q2 2016. Seattle followed a close second with a 9.9% increase while Denver, Dallas, Tampa, Miami, San Diego, San Francisco, Atlanta and Las Vegas all followed closely behind. In contrast to this, Washington and New York experienced the smallest increase in house prices which were 1%.
The construction of residential property continued to rise while new housing units that are privately owned increased by 0.9% year on year in July of 2016 while housing starts increased by 5.6% with completed deals rising by 3.2% to just over 1 million units.
There is no doubt that demand is on the rise, with sales increasing by 31.3% to a figure that has been seasonally adjusted of 654,000 in July 2016 beginning at the same period of 2015. In terms of properties for sale, there were just short of 250,000 units for sale by July 2016 which is a rise of 8.4% compared to the previous year.
In amongst a shortage of homes for sale, homebuilders remained optimistic as their home builder sentiment stood at 60 which had risen from 58 in July although it was on par with the June figure.
There was a growth in the economy of 1.2% during the second quarter of 2016 and this was lower than expected following a growth of 0.85% in Q1 2016, 1.4% in Q4 2014, 2% in Q3 2015, 3.9% in Q3 2015 and 0.6% in Q1 2%. Due to the strong dollar and lower oil prices, exports and investments were weaker, although the economy did grow by 2.4% during 2015 which is on a level with the growth experienced in 2014 although it is expected to grow by 2% this year.
For more information or to browse a range of US properties, please contact Hopwood House.

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