Which are the hottest US property markets?
Patrick W ONeill
Chinese property investment in the United Sates is projected to double again this year according to several speakers at the US Property Conference being held in Hong Kong this month. The panelists agree that the correction of the US market is in full swing with inventory levels down, increased demand and rising values across the country.
American property values plummeted 34 per cent after the 2006 market vertex according to the S & P Case-Shiller Home Price Index. Values hit rock bottom in late 2009 and remained relatively flat until this year’s supply and demand imbalance resulted in double-digit price growth in most major markets.
The number of condominium sales surged 22.1 per cent over the previous quarter to 1,132 sales according to a recent report released by Prudential Douglas Elliman Real Estate. The number of sales for the quarter is up 41 per cent compared to 2009. The surge in sales has driven inventory down 36 per cent since 2009 and down 24.3 per cent compared with last quarter. As a result, the median price of a condominium in the Big Apple increased 4.8 per cent this quarter to US$1,100,000.
Two years ago Florida was reeling from one of the highest foreclosure rates in the country. This year the Sunshine State is experiencing a dramatic correction with single family inventory down 31.2 per cent, the number of closed sales up 25.3 per cent and the median price up 9 per cent. In the condo-townhouse market, the number of pending sales is up 47.1 per cent with the median price increased 20.2 per cent.
Mirroring the trend across the US, cities in the Lone Star State have experienced steady price growth since bottoming out in 2009. The number of units for sale in the Dallas market is down 6.4 per cent this year while the number of pending sales is up 12.8 per cent. The year-to-date median sales price is up 12 per cent. Texas has no state income or capital gains tax placing it in the top four cities for foreign purchasers according to the National Association of Realtors.
The shining city in the desert of Nevada was one of the hardest hit housing markets in the country with values plummeted over 70 per cent in some areas. Buoyed partially by an increasing investor appetite the number of properties for sale is down 18.2 per cent from last year. The annual median price of properties for sale is up 19.3 per cent while the median price of homes sold is up 15.7 per cent.
According to a recent report by Polaris, the City of Angels has experienced a dramatic jump of 18.7 per cent in the condominium median price compared to last year. Pending sales are up an astonishing 46.4 per cent and the months of remaining inventory is down 43.7 per cent.
In the Aloha state, year to date home prices are up 9.3 per cent in Honolulu to US$623,250. The number of pending sales is up a whopping 50.9 per cent with the number of homes for sale down 13.5 per cent. In the upscale neighborhood of Kahala the number of sales is up 67 per cent while inventory is down 37 per cent.