Will President-elect Obama mean all change for the US housing market?
With Barak Obama celebrating his victory as the 44th President-elect of the United States, it has been announced that the US remains the most popular choice for Brits when buying an investment property abroad, according to data from themovechannel.com. The overseas property investment portal ranked the US top in their latest ‘Top of the Props’ poll for September 2008, ahead of both Portugal and the UAE. This could be due to a number of factors, the high rental potential of many properties in the country and the weakening of the dollar against the pound to name but two.
And this is not the only good news to befall the country of late. The Commerce Department has also announced that September 2008 saw the sale of new homes in the US rise by 2.7% on average when compared to August 2008 figures. With the dawn of a new presidential era in the US it will be interesting to see, once the initial hysteria has died down, whether these positive statistics remain. With a new president, and a new-found confidence, the dollar is known to ‘bounce’ or strengthen for a short period (a show of consumer confidence), but once this initial euphoria has relinquished, what is the effect that Obama will have on the US housing market or this confidence in the long term?
Barak Obama’s pre-election policies distinctly showed a view to realistically turning around the housing market, with guidelines for simplifying the mortgage procedure including a universal mortgage credit as well as his clear policy on fraudulent mortgage providers – close down the loopholes exploited and encourage industry insiders to report any suspicious activity. And with the government playing a larger role in the nation’s property industry, hopes are high for the stabilisation of the market, with 58% of Americans having been reported as thinking pre-election that Barak would do a better job with the country’s property market than McCain, according to a survey carried out by Harris Interactive on behalf of Zillow.com.
There is a great deal of excitement and anticipation surrounding Barak’s new presidency and Danny Silver, Principal of Property Direct America, thinks that this will have an effect on Brits looking to invest in property in the US, he says:
“With the US consistently being voted the top choice for British investors looking to secure a property overseas, the US election and Barak Obama’s win with the excitement surrounding it will surely heighten the appeal further still. Increased market confidence is good news for all as it is this that ultimately fuels the housing market and stimulates property price growth.”
The southern US is one region that presents opportunity for positive investment with recent figures showing that new home sales rose by around 1% in September (according to the National Association of Realtors) and with excellent mortgages also on offer. One such project proving attractive to foreign investors is Bayside Park in Biloxi, Mississippi. Here, Brits can invest in steel framed energy-efficient homes in high demand by the local population with 90% loan to value mortgages available (subject to status), from as little as £88,000/ $159,900. For more information contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.