According to Jacques Gendreau, Investors will gradually take advantage of low financing cost, rental shortage and positive cashflow. Patience and emerging inflation will be key to a successful real estate program.
US housing shows signs of stabilizing
By James Politi in Washington and Telis Demos in New YorkPublished: October 4 2010 16:47 | Last updated: October 4 2010 16:47
The US housing market showed further signs of stabilization on Monday after the National Association of Realtors’ index of pending home sales rose by 4.3 per cent in August.
In spite of record low mortgage rates, Americans have been reluctant to buy homes and invest in property during the recovery, amid high unemployment, difficulty securing mortgages, and fresh memories of the decline in house prices during the crisis.
Now, it appears that the housing sector is regaining some ground, albeit from very low levels and at a very slow pace. Although the August pending home sales index – which measures contracts agreed but not closed – has risen for two consecutive months, it remains 20.1 per cent below its level in August of 2009.
The gains in August pending home sales were concentrated in the regions that have been most affected by the housing boom and bust. In the South, sales rose by 6.7 per cent, while in the West they increased by 6.4 per cent in August. In the Midwest, the gains were more muted, with the index rising by 2.1 per cent, while sales declined in the Northeast by 2.9 per cent.
“To be sure, housing continues to face considerable headwinds that will likely keep the sector depressed well into 2011,” economists at RBS said on Sunday in an analysis on the post tax credit housing environment. “Still, while there have been peaks and valleys in both the home sales and housing starts data since late last year, it seems that, for the most part, the underlying pace of housing activity has remained largely steady, albeit at historically low levels.”
“Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back into the market,” said Lawrence Yun, chief economist of the NAR said on Monday. “However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.”
Last week, Standard & Poor’s Case-Shiller index showed that the rebound in home values slowed in July, with home prices in 20 large US cities up 3.2 per cent compared to a year earlier. In June, they posted a 4.2 per cent increase compared to the previous year.
In spite of record low mortgage rates, Americans have been reluctant to buy homes and invest in property during the recovery, amid high unemployment, difficulty securing mortgages, and fresh memories of the decline in house prices during the crisis.
The US housing market received temporary boosts late last year and early this year when the government was offering an $8000 tax credit to first time homebuyers, but the sector took a big dive again this summer as the economy slowed and the benefit lapsed.
Now, it appears that the housing sector is regaining some ground, albeit from very low levels and at a very slow pace. Although the August pending home sales index – which measures contracts agreed but not closed – has risen for two consecutive months, it remains 20.1 per cent below its level in August of 2009.
The gains in August pending home sales were concentrated in the regions that have been most affected by the housing boom and bust. In the South, sales rose by 6.7 per cent, while in the West they increased by 6.4 per cent in August. In the Midwest, the gains were more muted, with the index rising by 2.1 per cent, while sales declined in the Northeast by 2.9 per cent.
“To be sure, housing continues to face considerable headwinds that will likely keep the sector depressed well into 2011,” economists at RBS said on Sunday in an analysis on the post tax credit housing environment. “Still, while there have been peaks and valleys in both the home sales and housing starts data since late last year, it seems that, for the most part, the underlying pace of housing activity has remained largely steady, albeit at historically low levels.”
“Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back into the market,” said Lawrence Yun, chief economist of the NAR said on Monday. “However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.”
Last week, Standard & Poor’s Case-Shiller index showed that the rebound in home values slowed in July, with home prices in 20 large US cities up 3.2 per cent compared to a year earlier. In June, they posted a 4.2 per cent increase compared to the previous year.
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