United States » Market Report

It is essential to invest in property which can provide you with a very sound investment both in terms of rental yields & capital appreciation. However even though the property markets are experiencing high growth at the moment the difference between a good & bad investment can be very significant both in terms of rental return & capital appreciation.

Land is lavish in the USA so prices have tended to rise slowly but steadily over the years. In USA financing is easy to attain and there is always a constant stream of tourists coming to the area.

The residential property market in the US grew 6% from approximately 2 million units in 2002 to 2.1 million units in 2003, resulting primarily from increased demand for housing driven by low interest rates during the year.

Single unit structures remained the largest sector in the US residential property market, accounting for approximately 80% of the total market value in 2003. 

The US residential property market remained highly fragmented, with the five largest companies in the market accounting for only 8.1% of the total market value in 2003. 

The US residential property market is forecast to grow approximately 14.6% over the 2004 to 2008 forecast period from approximately 2.2 million units in 2004 to 2.5 million units in 2008.

The Miami area is one of the most up-to-date real estate markets in the nation with prices appreciating approximately 61% during the last ten years. Low mortgage rates and steady sales volume, driven by population growth from Latin America and other surrounding areas, have helped keep real estate prices on the rise. While Miami prices have increased rapidly, the growing number of households can still take advantage of a median single-family home price of approximately $215,000.Many real estate investors are looking past the hot strip of Miami to the "City of the Arts," also known as Sarasota. Downtown Sarasota's bay front condos are in high demand, with prices ranging from $300,000 to $10 million depending on location. Because much of Sarasota real estate is within walking distance of theatres, restaurants, upscale shopping, specialty stores, and cultural centres. 

In cities and suburban areas throughout the state, buyers are rushing to purchase homes, condos and lofts as fast as Florida real estate developers can build them. With demand outpacing the supply of Florida real estate, initial offerings and pre-construction prices are luring bargain-hunting hopefuls. Waiting lists and waiting lines have become part of the South Florida real estate scene in Miami-Dade and Palm Beach counties.

The Florida Association of Realtors reports that the values of homes throughout the state have increased around 87% in the last five years. In June 2003 alone, the Florida market saw sales of existing single-family homes rise 14% over the same period a year earlier. 

For those who are planning to invest in property in South Florida now is the time to take the plunge. The exchange rate still favours British buyers - £100,000 translating to $190,000 USD at the end of February 2005. This can buy a detached 4-bed home with swimming pool in a beautiful gated community anywhere from Key West to Naples or Miami. A four-bedroom, three-bathroom Florida villa in Tallahassee will cost around $275,000 whereas a similar property in Key West will cost nearer to $4 million. Given South Florida's popularity as a tourist resort, there are ample opportunities to turn a property purchase into an ongoing income stream too.

Los Angeles County's highly diverse economy, the second-largest in the nation, is driving growth in all sectors of commercial real estate. Large contiguous blocks of space are hard to find in West Los Angeles, Pasadena and Burbank, where buildings that were getting $20 to $24 per square foot a few years ago now command rents above $50 per square foot. Sale prices in excess of $500 per square foot are now commonplace in West L.A. and certain Class A properties will top $700.

California

Sacramento founded in1849 and is the oldest incorporated city in California has a wider range of properties with 2 and 3 bedroom townhouses from $269,000 upwards.

Palm Beach is another quite expensive area with a 4 bedroom, 4 bathrooms detached house costing in the region of $1,800,000. 

New York

The city is the most expensive area to buy property and a one bedroom apartment in downtown New York off Broadway will set you back a cool $500,000 for a 5 bedroom detached house outside the city you will not get much change from $2,500,000. However along the Hudson Valley property starts to get more reasonable and further inland at Franklin County there are properties available from just $60,000 for a 2 bedroom, 2 bathroom apartment and 4 bedroom detached houses for $110,000.

Texas

More British migrants settle here each year than the sunshine state of Florida. With its big cities, beautiful beaches and lush back country it not just cowboys and deserts. Property prices throughout the state even in Houston and Dallas are affordable and reasonable.

Dallas property prices are around $160,000 for a 3 bedroom, 2 bathroom house rising to upwards of $400,000 for a 4 bedroom, 3 bathroom detached house. Houston 3 bed, 3 bathroom apartment for $110,000 up to $400,000 for a 5 bedroom house. Austin situated inland property prices are much lower and for $109,000 you will be able to purchase a substantial 4 bedroom house and gardens or for $90,000 a large 3 bedroom apartment. Fort Worth is equally well priced with 3 bedroom properties selling for $93,000 and 4 bedroom townhouses for $119,000. A 4 Bedroom house on a large corner plot with 2 bathrooms, 2 living rooms and 2 dining areas can be yours for around $135,000.

Asking prices fell at the fastest rate in San Francisco, down 3.6% during January and 6.1% for the most recent three-month period. Prices also fell by more than four percent in the San Diego, Los Angeles and Detroit markets during the most recent three month period. Prices only increased in the New York metro area during January and were flat in Dallas and Phoenix.

Metro areas are expected to record losses of 20 percent or more during the downturn, with the national median price for single-family homes dropping 13 percent through early 2009. Factoring in discount offers from sellers, the actual price decline would be well over 15 percent.

The US market became definitely weaker in the first half of year 2008 as corporations returned back and economic conditions worsened. International Property Brokers forecasts that real estate market conditions will become better in 2009 where very modest recovery of growth is anticipated.