The US Home Market Report:
The U.S. housing market remains surprisingly vibrant. Demand remains robust, and residential construction activity continues to rise.
The S&P/Case-Shiller seasonally-adjusted national home price index rose by 6.21% during the year to November 2017 (3.91% inflation-adjusted), its strongest y-o-y growth since June 2014. This was supported by Federal Housing Finance Agency’s seasonally-adjusted purchase-only U.S. house price index, which rose by 6.54% y-o-y in November 2017 (4.24% inflation-adjusted), a slight increase from y-o-y rises of 6.44% in November 2016 and 6% in November 2015.
All 20 major U.S. cities experienced relatively strong house price hikes, according to Standard and Poor’s, with Seattle posting the highest increase of 12.71% during the year to November 2017, followed by Las Vegas (10.6%), San Francisco(9.04%), San Diego (7.45%), Los Angeles (7.02%), Tampa (7.02%), and Dallas (7.02%). Strong house price rises were also registered in Detroit (6.98%), Denver (6.94%), Portland (6.94%), Boston (6.26%), Charlotte (5.76%), New York (5.71%), Phoenix (5.54%), Minneapolis (5.41%), Atlanta (5.14%), Cleveland (4.13%), and Miami (4.06%).
Washington and Chicago saw the lowest growth in inflation-adjusted house prices at 3.28% and 3.59%, respectively.
The Mountain region had the highest house price increases of 8.9% y-o-y in November 2017, followed by the Pacific region (8.6%), South Atlantic (6.9%), East North Central (6.3%), West North Central (5.9%), and West South Central region (5.8%), according to the FHFA.
The average sales price of new homes sold in the U.S. rose by about 4.3% y-o-y in December 2017, to US$398,900, according to the U.S. Census Bureau. On the other hand, the median sales price of new homes sold increased by a more modest 2.6% to US$335,400 over the same period.
For existing homes, the median price was up 5.8% to US$246,800 in December 2017 from a year earlier, according to the National Association of Realtors (NAR). December’s price increase marks the 70th consecutive month of year-over-year gains.
Why is US Housing Market Booming?
REFINANCE RATES AVERAGES
|PROGRAM||RATE||1W CHANGE||APR||1W CHANGE|
|30-Year Fixed Rate||4.36 %||0.02 %||4.44 %||0.02 %|
|15-Year Fixed Rate||3.77 %||0.02 %||3.90 %||0.02 %|
|5/1 ARM||3.73 %||0.00 %||4.62 %||0.00 %|
Low-Cost Opportunities In US Housing Market For Retail Investors:
Here’s how to invest in US real estate market without buying physical homes or properties but through Real Estate Investment Trust (REIT):
The big concern now for you as a retail investor is how to be a shareholder in a growing small cap REITs.
In 2018, here the top 10 performing REITs you can check out:
- Realty Income (Dividend Yield – 4.6%)
- Kimco Realty (Dividend Yield – 6%)
- W.P Cary (Dividend Yield – 5.7%)
- Welltower (Dividend Yield – 5.2%)
- Federal Realty Investment Trust (Dividend Yield – 3%)