Due to the slowdown in the US real estate market housing prices are falling - ForumDaily
The article has been automatically translated into English by Google Translate from Russian and has not been edited.
Переклад цього матеріалу українською мовою з російської було автоматично здійснено сервісом Google Translate, без подальшого редагування тексту.
Bu məqalə Google Translate servisi vasitəsi ilə avtomatik olaraq rus dilindən azərbaycan dilinə tərcümə olunmuşdur. Bundan sonra mətn redaktə edilməmişdir.

Due to the slowdown in the US property market, housing prices are falling

The US housing market, especially in places like Seattle (WA), Silicon Valley (California) and Austin (Texas), is experiencing a significant slowdown. Buyer activity is declining due to rising mortgage rates, and also because prices are rising about twice as fast as American income, writes Bloomberg.

Фото: Depositphotos

According to Robert Schiller, an economist and a Nobel laureate, this “may be the beginning of a turning point.”

Appeared in July, figures show at least a cooling of the real estate market in the United States.

US home sales fell in June, for the third month in a row. The rate of acquisition of new homes is the slowest in the last eight months. At the same time, the supply on the market began to grow after falling for several years.

According to the Federal Agency for Housing Finance, in May, home prices in the secondary market increased by 6,4%, which is a slight increase compared to the same period last year from the beginning of 2017. Shares of the construction company PulteGroup Inc. fell to 4,9% July 26 after the housing builder reported that orders to him fell by 1% compared with the previous year, the company suggested that this was due to an increase in mortgage rates.

Given the high prices and loan rates, people decide to wait a few months in the hope that the situation will change for the better for them.

According to forecasts, by the end of 2018, the rise in housing prices in the USA will be 5%, and 3% in 2019. For example, in 2005, these prices increased by 10,7%.

According to Redfin Corp., some of the most expensive markets, where sales fall under the weight of prices, are currently showing a significant increase in supply. In June, the supply in San Jose, California increased by 12% compared to the same period last year. The offer grew by 24% in Seattle and by 32% in Portland, Oregon.

This led to the fact that buyers do not want to rush, they inspect several options and only then send the offers, because their fears that the house will be taken away by someone faster than them have decreased significantly.

However, the housing market is supported by a healthy labor market and stable economic growth, which indicates a stabilizing trend in housing prices.

According to the United States Census Bureau, households in the second quarter of 2018 were 64,3% compared to 63,7% a year earlier.

“Although there is a slowdown in the growth of sales and housing prices, it did not slow down the growth of home ownership,” said Sam Cather, chief economist at Freddie Mac.

Home ownership is still inaccessible to many Americans, especially for first and young buyers. According to the National Association of Realtors, the average price for the secondary housing market rose in June to record 276 900 dollars, and the offer remained on the market for 26 days without change and price reduction. At the same time, the offer on the real estate market was not changed for three months.

Read also on ForumDaily:

As a foreigner to get a loan for housing in New York: instructions and pitfalls

How long does it take to buy a house in different US cities?

Top-10 states with the highest real estate tax

US housing market Educational program real estate in the USA
Subscribe to ForumDaily on Google News

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis. 



 
1070 requests in 1,024 seconds.