Property sales in the U.S. on the up

Today's Miami Herald reports on a news item covered by a number of newspapers - property sales in America for the month of September are expected to show a better than expected increase, indicating that the property market is strengthening.

A report out today from the National Association of Realtors shows that national property sales rose by 5% during that month. The median price of a sale in the U.S. now stands at $174,900, which is a slight dip from the August figure (of $177,300) but down by 8.5% from the same month the previous year.

At the same time, the number of properties for sale fell (to 3.63 million), also a promising sign; at that level it would take 7.8 months to sell all stock.

This upturn in sales is most prevalent in areas and cities in the western U.S. (which saw sales rise by 13% from August to September), such as Los Angeles, San Diego and Las Vegas.

This increase in sales is down to low priced, foreclosed homes; attractive current mortgage rates; and a tax credit for first time buyers allowing them up to 10% off the purchase price (up to $8,000). This credit expires in November, which may be prompting a rush to purchase property before then, though the credit may possibly be extended beyond Novemberto help the property market to recover further.

So what does this mean for foreign buyers? Well, this upturn in sales means that supply will start to contract - not a pressing issue right now, but as more and more buyers enter the market, desireable properties will be snapped up more quickly. If you are seriously considering buying in Florida or the U.S., it will also mean that you'll be up against more competition. Finally, a rise in the number of properties being sold is likely to eventually cause a sharper rise in prices - so you may want to take the plunge sooner rather than later.

Article: Home sales rise 9.4 pct in Sept., beats forecast (23rd October 2009, Miami Herald)