Realtors in Florida are protesting vociferously against the immigration clamp down measures that the US government implemented following the terror attacks in 2001 and which, they say, are harming foreign direct investment into real estate in America.
According to the chairman of the US Federal Reserve Ben Bernanke, the US investment property climate is not particularly positive right now - in fact the phrases he used recently when referring to the housing market in America were “substantial correction” and “major drag”. So is it still possible to make a profit from property in America or does the situation in the US real estate market represent the beginning of the end for this particular cycle of global house price increases? We examine the situation more closely…
It could be a consolation to property investors in the USA to know that while the residential housing market is going cold, commercial property USA style is heating up quite nicely thank you, due largely to the fact that recent positive US economic movements have resulted in the creation of almost four million new jobs in the past two years alone.
The latest Knight Frank House Price Index shows that globally house price increases are slowing down and that the countries that boomed relatively early on in the last cycle are being hit hardest. So what does this mean for property in USA where house prices in many states have increased substantially in a relatively short space of time and where interest rates are creeping up?
According to the National Association of Realtors, 2006 will be yet another record year for the real estate market in the US in terms of sales volumes, underlying property price increases and consumer demand.
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