USA Property News

Rise in US real estate sales driven by luxury homes

Rise in US real estate sales driven by luxury homes
The recovery in the US property market appears to be well under way, with house sales once again increasing in July. Low mortgage rates and cheaper homes are helping first time buyers to get onto the property ladder but it is luxury homes that have seen a huge upturn in sales over recent weeks.

Keep reading to learn more about America’s improving property market.
Sales and prices of American property rise in July

The Kansas City Star reports that sales of previously occupied homes rose 2.3 per cent in July from June. The National Association of Realtors figures also that sales have increased by over 10 per cent over the past 12 months.

John Ryding, an economist at RDQ Economics, said that the "evidence that the housing market is recovering ... is fairly clear across a wide range of reports.”

Housing "is now becoming a small positive for the economic outlook."
A leading index found that house prices in the US increased 2.2 per cent from April to May – the second straight increase after seven months of flat or declining prices. Despite recent gains, prices remain around a third lower than they were at the peak of the housing bubble in 2006.
However, while homes at the lower end of the market may be more affordable there has also been a large increase in the sales of luxury homes. The newspaper reports that ‘rising demand for luxury homes is contributing to higher sales.’

Sales of homes that cost $1 million (£630,000) or more rose by 18.6 percent in July, the Realtors' group said.

Nick Marr, director of overseas property specialist said: “While house prices have fallen, record low mortgage rates are also a contributing factor in making homes more affordable.

“According to mortgage buyer Freddie Mac, the average rate on a 30-year fixed-rate loan in August was 3.62 per cent. Three weeks ago, the rate was 3.49 per cent, the lowest since long-term mortgages began in the 1950s. So, if you’re looking to buy a property in the US, they have rarely been more affordable.”