First Rays of Optimism Shine on the US Property Markets
Industry experts are expressing some optimism about the real estate market in the United States. Lawrence Yun, chief economist for the National Association of Realtors, says he expects the soft real estate market to begin a comeback by year’s end.
Nearly half the metropolitan areas in the country are seeing some increase in the price of homes. It appears that the fallout from the worst of the mortgage crisis may be slowing. Nonetheless, tighter standards for credit may keep many people out of the housing market in the near future. Experts suggest that expensive properties represent a high proportion of homes for sale these days. Mr. Yun believes that buyers who want to purchase a high-end home may be waiting for the introduction of higher loan limits.
According to a survey completed by the US Office of Federal Housing Enterprise Oversight, local housing markets throughout the country remain surprisingly resilient in spite of news reports. The health of the real estate industry in the nation’s mid-section remains relatively stable, in part because that area did not see the boom in housing that characterized other regions recently. Home sales in the Midwest rose by more than 3%, in spite of challenges in the mortgage industry. Difficult job markets in Ohio and Michigan are putting some downward pressures on the real estate market in those two states.
Buyers are benefiting from the large inventory of homes on the market today, over 10 months’ worth. Real estate in California and Florida has been hit hardest by the current slump; the figures for those areas add heavily to the negative trend in national data. Although the price of homes is dropping in some markets on the coasts, property prices in California in particular continue to be well above what many people identify as affordable.
There is good news for folks who can’t afford to buy in California. Forbes.com recently identified several cities throughout the US that continue to be good bets for home buyers under current conditions. The list includes Houston, TX; Las Vegas, NV; Phoenix, AZ; and Salt Lake City, UT. At present, these markets are characterized by two very positive features: reduced prices for homes and a solid jobs market.
According to a report in MSN Money, three of the ten strongest real estate markets today are located in Utah: Ogden, Provo and Salt Lake City. Utah’s capital city is partnering with local business to create the City Creek Center project in downtown Salt Lake City. During the next several years, the city will invest nearly $1.5 billion to develop the downtown area. Described as a “new vision” for the city, the plan includes green space, facilities for educational endeavors, a performing arts center, and facilities for sports and recreation.
Included in the earliest phase of the project is Marmalade, a mixed residential and commercial community. The project, touted as Utah’s outstanding example of “green” development, includes nearly 100 condominiums, townhouses and penthouses near downtown Salt Lake City. The new homes will feature natural stone countertops, hardwood floors, huge windows and spacious balconies overlooking the city. Developers are taking reservations now and working with WellsFargo to provide financing.
