US Property Sales Nearing Record High

US property sales pending almost reached a record high in February, according to the National Association of Realtors (NAR).

The latest report from the NAR confirmed that US property sales pending rose by a huge 5.5 per cent in the second month of 2017, resulting in an annual year-on-year increase of 2.6 per cent.

This strong annual rise constitutes the highest increase since April 2016, and indeed the second strongest growth since over a decade ago in 2006.

US property sales pending tend to increase as the warmer spring months come and encourage people to look at moving.

Prices for US property are still expected to rise however, as the supply of new properties struggles to keep pace with demand as homes are sold.

Overseas property investors are also adding to the demand, as they see the US economy recover and grow, to make US property a safe haven for their money.

NAR chief economist, Lawrence Yun, commented: ‘Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country.

‘The stock market’s continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year.’

Mr Yun also commented on the shortage of available properties to buy, saying: ‘The homes most buyers are in the market for are unfortunately the most difficult to find and ultimately buy.

‘The country’s healthy labor market is translating to greater job security, but affordability is not improving because home prices in some areas are still outpacing incomes by three times or more because of tight supply.’

It seems that the election of Donald Trump to the White House has not had the destabilising effect on US property that many feared.