The US housing market is finally firmly on the ascent, with trends in luxury real estate indicating continued positive growth. The National Association of Realtors recently noted that the national median price of transactions in the housing market rose in 119 out of 164 metropolitan areas, indicating positive progression in a wide range of sectors. At the conclusion of 2013, single-family home prices increased across 73% of US cities, representing a significant increase in home equity for American property owners.
Although this represents a slower pace of growth than the previous quarter, experts agree that the decrease in speed is a sign of steady and sustainable recovery. Reports in early March 2014 indicated that both 30-year and 15-year mortgage rates have recently dropped, which could help even more people find their way onto the property ladder.
There are further key signs that the US housing market is improving. A review of home sales in December 2013 led by Campbell and Inside Mortgage Finance found that homes spent an average of 9.7 weeks on the market, with 97.1% selling at the asking price. This is in comparison with an average of 11.6 weeks on the market and 95.5% sold at the asking price in December 2012. These reports will also have an important impact on the American public’s confidence in their real estate market, with homeowners who may have been reluctant to sell during the recession now feeling ready to put their home on the market. Bloomberg recently reported that new homes are being built at a faster rate than at any point in the past five years, accompanied by quotes from senior economists expressing their faith in the resilience of the housing market.
Traditionally, the luxury property sector develops dynamically regardless of economic change, and the market for premium homes in the US is certainly thriving. Among foreign buyers, California, Arizona and Florida remain the three most popular destinations, cumulatively accounting for 49% of international sales in 2013. All three boast beautiful natural scenery, ideal weather conditions and impressive collections of existing luxury houses. In 2013, the numbers of homes sold in California for $5 million or more surpassed any other year, and the state was home to four of the five most expensive housing markets in the country as singled out by the NAR’s survey: San Jose, San Francisco, Anaheim and San Diego.
If you’re considering investing in the luxury American property market, Engel & Völkers are here to help. We have shops across California, Florida, Arizona and numerous other states, with bases in highly desirable areas like Key West, Newport Beach and Scottsdale. Our expertly trained agents have years of experience in helping clients from all over the world find a second home in the United States. Just visit the E&V USA website to start searching for a beautiful new property today.