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Finally the US real estate market seems to be on its way back and US single family homes are now at their highest level since 2008!
According to the US Commerce Department who made an announcement in January 2015, single-family housing increased to 7.2 percent to a seasonally adjusted annual pace of 728,000-units. This again is its highest percentage since March of 2008.
That is great news for sellers, realtors, developers and even buyers. New construction permits went up as well (which rose to 4.5%) so there will be more inventory and choices for home buyers. In addition, the revitalization of the US housing market is helping home sellers who can now sell their home and buy a new one that fits their real estate needs better. The news also helped construction companies and real estate developers whose shares were trading higher after the announcement.
In addition recent changes for government-backed mortgages make it now more affordable for first time home buyers in the USA. These recent changes affect both PMI (Primary Mortgage Insurance) and down payments. If a borrower has a FHA-backed home loan, his PMI will be decreased from 1.35% to 0.85%. This change is to take place by the end of January of 2015. The experts estimate this decrease to save first time home buyers $900 per year on average.
Though these recent improvements are welcomed, the US real estate market is not back yet to its prior glory … though we are getting closer than before. Some real estate markets have regained their prior value (or close to) while others are still lagging behind.
If you are in the market to buy a home for yourself or for investment purpose, make sure to do your research first. An experienced agent and local mortgage broker should be able to give you an accurate sense of the current market conditions so that you can better assess a potential listing.
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