Tuesday 19 July 2016

Real Estate Market in the USA, Investment Prospects, Threats,and Top Destinations

The real estate market in the USA despite being hit by problems like financial crisis, recession, mortgage crisis, lack of profits is still very lucrative. The real estate in the USA especially in the metro cities has finally seen some semblance of normalcy. One of the best ways to wealth creation either on long term/short term basis, investment in real estate must be made after giving all aspects proper consideration.


Investment Prospects in Real Estate in the USA

Investment prospects in real estate in the USA are looking up and investors after due diligence are making new investments in property either for sale or rental purposes. Factors investors consider while investing are tax, location, climate, cost of living, laws, insurance costs and others. For prospective home buyers, who want to buy properties for living or for renting they consider several factors; these being housing demand, lower mortgage rates, job market, vacancy, affordability, locality, amenities, commuting.

Threatsin Real Estate Market in the USA

Despite growth of real estate market in the USA, there are threats that can affect future prospects.Investors Cash Out, happens when investors having realized substantial gains on their investments cash out.Foreign Buyers Stop Buying,happens when US$ dollar strengthens against currency of their nation.Incomes Not Up to Mark, happens when income doesn’t keep pace with housing market prices, making it hard for buyers to afford homes in areas of their choice.Lenders Not Giving Mortgages, after suffering losses due to economic crisis, mortgage crisis, lenders are not easily providing mortgage to borrowers. For those with dented credit history its’ even harder.Increase in Mortgage Rates, if Federal Reserve increases rates it can impact real estate market big time and home buyers may have to pay more, a dampener.

Top Real Estate Destinations in the USA

The real-estate market in the USA is growing rapidly with lot of opportunities for steady growth in return.While some markets are attractive in residential sector others are in commercial sector. Top destinations for commercial as well as residential real estate development are Dallas, Denver, Miami, Houston, Atlanta, Tampa Bay, Detroit, Austin, Las Vegas, Orlando, San Diego, Sacramento, New Orleans, Memphis, Baton Rouge,San Antonio, San Bernardino, New York City, San Francisco, San Francisco, San Jose, Phoenix.

While in some markets properties are being developed for sale, in some areas for rent only. The metro cities or high value areas are the biggest attraction as they attract maximum interest from investors and home buyers.

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