Tuesday, September 23, 2014

Price spiral in the US housing market is losing momentum

The dynamics of the U.S. real estate market has slowed again in June and thus builds on the trend of recent months.
The S & P / Case-Shiller index, which tracks price trends for real estate in the twenty largest U.S. cities has increased by 8.1% compared to June 2013. It is the smallest increase since January 2013 analysts had forecast an increase of 8.3%.
Also new is the national price trends on a monthly basis will be charged. Within a year up homes have become more expensive in the United States, 6.2%.
Normalization of the housing market
Prices have risen in the past twelve months in all twenty cities, but has slowed the increase everywhere. Thus, as the price increase in San Francisco has halved since last summer.
The largest gains recorded Las Vegas (+ 15.2%), San Francisco (+ 12.9%) and Miami housing market (+ 11.5%), while Cleveland the laggard (+ 0.8%).
"For the first time since February 2008, a lower growth rate than in the previous month was measured in all cities. Other real estate indicators, such as housing starts and sales of existing homes, developing positively. Together this indicates a normalization of the housing market, "said David Blitzer, chief economist of the Index Committee.
Engine of growth real estate market
U.S. house prices have risen rapidly in recent years: Nationwide they have increased 11.3%. It was the strongest price increase since 2005, but the high prices dampen demand for residential property. A slowdown in price spiral could therefore provide new momentum in the housing market, the developed behave since the beginning of the year.
The interest rate for a thirty year fixed mortgage is also decreased slightly in recent months. He was, according to the government-backed mortgage financiers Freddie Mac 4.1% (by August 21). In early January he was still 4.53%.
The real estate market proved in the past two years as a growth engine of the U.S. economy; that he regain its former strength, therefore, is central to the continued economic recovery.

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