The American real estate housing bubble (situation where asset prices are based on implausible or inconsistent future prospects) since it happened had been affecting many parts of the US real estate market. It began in 2006, but the real ‘damage’ occurred in 2007/2008. Since, housing prices had been on the decline and have reached the new lows in 2012. According to the general consensus, the main cause of this housing crises was credited to the 2007-2009 recession. Since then, many banks declared bankruptcy or came close to it; home prices continued to fall and foreclosure rates increased.
Some experts claim the US housing bubble hit harder than the Great Depression. However, the American real estate housing bubble, even though it was hard on the Americans, drew the attention of potential foreign investors. Among top foreign US real estate investors are Australians. Many Australians saw the chance to seize the opportunity and invest in low-priced American properties with a high potential for growth and high profit. This Australian American real estate trend shows no signs of slowing down. In fact, still many Austrians are interested in investing in the US real estate. If you are one of them, here are few more facts on the US real estate you may be interested in.
- The largest price drop in the history of the US real estate market was reported on December of 2008.
- Thanks to the increase in home prices, 5 million of homeowners has been released from negative home equity.
- In 2012, according to the reports, 31.4% of homeowners were underwater (this is when a property is worth less than its outstanding mortgage).
- According to the latest reports, about 21% of homeowners are still underwater, but is expected for this number to fall as the American real state continues to improve.
According to American real estate market specialists, the US real estate is still in the stage of recovery and this is what can be expected in 2014:
- The prices of homes listed for sale will rise about 4%.
- After the bubble burst, majority homeowners were doing refinancing. This trend will not continue in 2014, since experts believe there will be more purchases than refinancing.
- An increase in new construction.
- Home sales and price increase will be slowed by higher mortgage rates.
- According to experts, a high priced home are sold in a period of about five months.
- Because of high demand, the average number of days to move in in a new property is 70 days.
With the American real state prices on the rise and the facility (for borrowers with good job and credit) in getting a mortgage, 2014 will be a good year for buyers and sellers.