The US property market is currently booming, partly due to a shortage of suitable property available on the market to purchase, especially in the middle and lower income sectors.
US property has now seen inventory drop on an annual basis for 24 months in a row, the longest uninterupted fall for over two decades. Eight out of ten US property markets now have fewer homes for sale than a year ago.
With the shortage of US property on the market, prices have been rising steadily, with the nationwide median home price surpassing $250,000 for the first time a few months ago and xpected to hit £275,000 any time, which would represent a 9 per cent rise from last year.
The shortage also means that properties are selling quicker. Properties spent a median 60 days on the market in June, five days less than the same month last year.
Total inventory of US property for sale dropped by 11 per cent in June compared to june 2016. Plus a lot of new listings are in the upper tier of the market, with little available for middle and lower income buyers, meaning this segment is becoming ever more competitive.
Javier Vivas, manager of economic research at realtor.com, commented: ‘Most of this fresh inventory isn’t addressing the largest, most desperate group of buyers. With no clear hints of new construction providing short-term relief, there appears to be no end to the inventory shortage on the horizon.’
The biggest metropolitan property markets in the US were studied by the real estate company to see which areas were showing the most activity over the last month, from May to June.
Northern California dominates the list as usual, with Vallejo and San Francisco keeping the top spots along with Sacramento in fourth place.
Other areas were big movers in the list however, with Detroit climbing twelve places to reach the top six, and Waco in Texas jumping eighteen places from thirtieth to twelth.
The full ranking list for June is below, with previous May ranking in brackets
1 Vallejo, CA (1)
2 San Francisco, CA (2)
3 Kennewick, WA (5)
4 Sacramento, CA (4)
5 Columbus, OH (7)
6 Detroit, MI (18)
7 Boston, MA (3)
8 Colorado Springs, CO (6)
9 San Jose, CA (7)
10 San Diego, CA (16)
11 Dallas, TX (12)
12 Waco, TX (30)
13 Grand Rapids, MI (13)
14 Stockton, CA (10)
15 Midland, TX (8)
16 Fort Wayne, IN (11)
17 Santa Rosa, CA (19)
18 Denver, CO (17)
19 Yuba City, CA (21)
20 Modesto, CA (23)
The shortage in available US property for middle and lower income buyers means that prices should continue to rise and the rental property market will continue to strengthen.
In turn this means that overseas property investors could achieve strong rental yields in America – as long as you can find a property to buy.
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