An upbeat report by JP Morgan has said that the US housing market has passed its trough and is now moving towards recovery. This was backed-up by a Reuters survey of 41 analysts, in which a third said the market bottomed in April.
However, much like the UK there are still far too many negative factors hanging over the housing market for anyone to honestly forecast a period of rapid growth anytime soon. Negative factors like: thousands of homes still facing foreclosure, thousands already foreclosed and bank-owned, and still high unemployment.
The volatility that still exists in the market was shown all too clearly, when it was revealed that existing home sales had fallen in August. It is 4 consecutive monthly rises in existing home sales that have caused most of the optimism that the market has bottomed, for it to suddenly fall has been a massive blow.
None the less, the momentum behind the recovery in global economies does seem to be gathering pace, with news of economic indicators turning positive almost by the day in the world's leading economies, including a rise in UK retail sales last week, a clear sign of a UK recovery.
This is leading to increased activity in the overseas property market, with reports of British buyers returning to the established markets looking for a bargain. With this, and the reports of a US property market in recovery, there is sure to be a lot of activity from foreigners looking to buy a bargain property in America.
No comments:
Post a Comment