Average Prices Up: U.S. Real-Estate Market “Same Level as 2003”

Average Prices Up: U.S. Real-Estate Market “Same Level as 2003”

Posted on: October 12, 2012

ID-10098593-300x199A significant report yesterday from CNN’s ‘Money’ confirms that the average price for American real-estate has climbed to the “same level it was nine years ago”—four to five years before the housing meltdown—authoritatively demonstrating “another sign of a turnaround” (CNN).

The New York Times similarly enthused that the U.S. housing market “continues to gather strength” and that “the price gains” are “spreading to the lower end of the market in many cities,” which the Times accurately calls “a particularly encouraging sign.”

Both major news-outlet reports emerged because of the recent release of “the closely watched” (CNN) Standard & Poor’s/Case-Shiller national home price index, which carefully assesses more than 80% of real-estate markets in the United States.  The index for July 2012 showed that average home prices climbed 1.6%, “the third straight month that prices in all 20 major markets improved” (CNN).

Index watchers noted that “it would have been the fourth straight month of improvement across the full spectrum if not for a slight decline in Detroit in April” (CNN).  Analysts were quick to observe, however, that Detroit’s “slight decline” was atypical of the current market trend upwards for average prices, as well as median prices in Florida, as previously reported by MSR Americas here.

In yet another confirmation of healthy forecasts for the U.S. real-estate market, CNN states that July’s level “matched levels last seen in the summer of 2003, when the market was marching toward its peak in 2006.”  Having now matched the healthy, sensible levels of 2003 means that US markets have indeed climbed out of the trough of 2007-08’s financial crisis and are firmly locked on an upward-trending trajectory, which our analysts at MSR Americas have been consistently reporting to our investment partners for some time.

“The news on home prices in this report confirms recent good news about housing,” said David Blitzer, Chairman of the Index Committee at S & P Dow Jones Indices.  “Housing starts are well ahead of last year’s pace, existing sales are up, inventory is down, and foreclosure activity is slowing.”  Indeed, foreclosure and short-sale opportunities are gradually drying up, implying a return to naturally robust market conditions, particularly in the more attractive markets like Florida’s represents.

Still, as MSR Americas has previously reported, foreclosures and short-sales remain especially solid investment opportunities for Canadians with even moderate levels of investment leverage.  The incredibly low prices, “record low mortgage rates,” and “tighter supply of homes” have combined with “lower unemployment” rates to lift markets (CNN).  A constant supply of renters—tourists and locals unable to buy—and the powerful Loonie have all coalesced into significant investment strategies in the Florida market for savvy Canadians.

>>MSR Americas is proud to be the leader in Florida property-investment strategies.  Click here to realize the full potential of Florida real-estate investment.