Now is the Time to Buy Property in America

After years of misery, it looks as if the housing market in America is finally making a comeback. So if you’ve ever dreamt of owning a property in Florida it might be wise to buy it soon.

The latest figures show the first green shoots for the wider economy and a housing recovery. In the past six months, 1.9?million American jobs have been created, and unemployment is down from 10.4 per cent to 8.3 per cent. Economic growth is running at an annual 2.8 per cent. The car industry, often seen as a good barometer, is booming – General Motors sold 640,000 more vehicles last year than in 2010.

This is beginning to translate into optimism in the housing market with some builders reporting an increase of 32% for new home builds, whilst many predict more orders will be received in 2012 than in 2011.

The National Association of Realtors, an umbrella organisation for estate agents, predicts that sales of new homes will rise from 305,000 last year to 351,000 in 2012, while the number of new homes to be built will go up from 599,000 in 2011 to 702,000 this year.

“This is the longest period of sustained improvement we’ve seen since 2007,” says David Crowe, the chief economist of the US National Association of Housebuilders.

Despite this increase house prices remain stubbornly low – but only for now. Average values of mainstream family homes across America are 32 per cent down on 2005, while many Florida agents admit prices are 50 to 75 per cent below their peaks.

All of this means that we might well be at the lowest point of the market. Brave purchasers and investors who buy now could make big gains if the recovery truly takes hold. The Association of Foreign Investors in Real Estate – a body of estate agents worldwide – has nominated the US as its “top tip” for investors in 2012.

In central Florida – close to Disneyworld, the Epcot Centre and the Hollywood and Universal Studios – where there are thousands of properties on sale within a short drive of Orlando airport. A four bedroom villa with a pool is going for as little as £88,000.

Most Brits buying in Florida let out their homes, too, so it is vital that they ensure the neighbourhood in which they buy is appropriately zoned.

Whatever financial route you take for a property, it looks as if the United States has become the land of opportunity once again for buyers who waste no time.

The old saying is that when America sneezes, Britain catches a cold. That was certainly the case when house prices fell. Will it apply now the US is recovering?

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Topic: Investing in foreign property