US House Prices All Done Falling says Bank of America
Home Prices All Done Falling says Bank of America
We have all been waiting for it and finally there appears to be good news starting to come out of the largest ecomony in the world. The green shoots appear to be starting to emerge for the US housing market, could this be the ideal time to get involved in US property investment?
The Team at Gower & Mae have been assessing the US Property market for some time and the pricing and market conditions are looking favourable. Mortgage uptake and approvals are still at all time lows and with many families renting property rather than buying it can be considered an ideal environment for Buy to Let Property Investment. Could the timing be right for Buy to let Investors to venture into the US market?
Large scale institutional investors are coming back focusing more and more attention on the US property market buying up large amounts of foreclosed property stock to hold for ongoing rental returns and future value gains. Just this week we commented on a Washington state based investor that acquired a portfolio of just under 1200 properties in Atlanta for $35 million for the ongoing rental returns it will provide. Many private and institutional investors see the US Property market at an ideal cross roads where value and timing are meeting for the first time since the great depression in the 30′s values are low and rental yields are high, however it must be noted that this environment will not be around for long.
Read below for more information on the market or for details on a current Buy to Let opportunity in the USA see visit our Buy to Let Atlanta page and get in contact with us to be sent current examples of Gower & Mae’s buy to let properties offering low price entry and rental returns of 11% + after all costs and tax.
Thank you for reading.
The Gower & Mae Team
Bank of America probably hopes its economists have this one right.In a new research report on Thursday, Bank of America-Merrill Lynch mortgage strategists and economists boosted their forecast for U.S. home prices this year. They now see prices squeezing out a 0.5 percent gain. That doesnt sound like much, but it is up quite a lot from the banks older forecast of a 3.5 percent fall in prices this year.”More information has come our way since the initial forecast, including favorable developments on the policy front, better economic data and a decline in the supply of homes on the market,” wrote Chris Flanagan, Michelle Meyer and Ryan Asato.
“We have therefore updated our home price model and believe that prices are bottoming now”
“Readers with functioning memories will immediately recall that economists have been getting housing calls wrong early and often — before, during and after the housing bubble and crash. At one point, remember, it was gospel that house prices would never fall. And we have seen calls of housing bottoms again and again since prices began to fall back in 2006.
Today the Wall Street Journal once again wrote of signs of life in the housing market, but they also said: “Home prices have yet to hit bottom.”The Bank of America economists are a little more optimistic, though they still dont see prices rebounding any time soon. After basically flattening this year, prices will rise just 0.3 percent in 2013, according to their forecast. And it looks like price gains this year will steal from prices in future years: Theyve cut their 2013 price-gain forecast to 0.3 percent from 1.3 percent and slashed their 2014 forecast to a gain of just 2.8 percent from 8.1 percent previously.