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US home price could dip

Date:-15-Sep-2011

A new report suggesting that U.S. home prices may weaken in the short term could present fresh opportunities for astute investors looking to maximise profits in the USA property market. 

With U.S. property values expected to appreciate in the longer term, any near term price dip in home prices will allow investors to factor in greater prospective capital growth. 

Confidence in the USA home market appears to be weakening following fresh concerns about the state of the country’s fragile economy. 

But with research showing that more Americans are shying away from home ownership and opting for rental accommodation instead, many market experts expect property investors to achieve greater rental returns, ensuring that the market remains attractive. 

Data supplied by Clear Capital reveals that average U.S. home prices appreciated by 4% in the four months to the August. 

However, many economists have projected that U.S. home prices, which have shown signs in recent months of improving following a five-year fall, will start falling again and possibly into next year. 

Alex Villacorta, director of research for Clear Capital, said that the USA property market was at a “critical juncture as to whether it can avoid another significant downturn”.