Double-digit price gains across America are a happy note for local investors that have been snapping up distressed properties at record levels. Chinese investment in the US has nearly doubled every year since 2009 and is expected to do so again this year. Chinese are the second largest international buyer group in the United States. Continued price growth is expected in markets throughout the country including New York, Florida, Las Vegas, Los Angeles and Hawaii.
National Outlook
The US national housing data is overwhelmingly positive, according to the latest National Association of Realtors (NAR) report. The existing home median price is up a dramatic 15.4 per cent over last year posting the sixth consecutive month of double digit price growth.
The gains are fuelled by a severe supply and demand imbalance which is unlikely to change in the short term. Properties are still being sold below the replacement value in many markets stultifying new development. As a result, decreasing inventory, accelerating absorption and further price growth is projected through next year.
The number of properties sold in the US last month increased 12.9 per cent to a seasonally adjusted annual pace of 4.59 million units while the number of properties available for sale is down 10.1 per cent. The months of remaining inventory dropped to 5.2 from last year’s figure of 6.5. Months of remaining inventory is the measurement of supply and demand with the tradition balance between buyer and seller’s market at 5.5 months.
New York