2018 seems to be likely a difficult time for real estate in entire America. The house price keeps surging upward regardless of the drop in the home sales. Experts try to figure out what is the main reason which results in raising the home sale price significantly in 2018. The global population keep increasing over the years; Also, we have to consider the number of immigrants to the US recently that widely trigger to the lack of supply of housing when the demand is excessively vast. Not including the foreign investor attempt to take advantages while trying to possess estates in the US. Consequently, these factors accidentally lead to the rise in the real estate’s price that negatively impacts on the decline of home sale in a whole America.
The Real Estate’s Current Circumstances in the U.S.
Presently, the shortage of the real estate’s source keeps maintaining at a high rate which broadly induces the extraordinary growth of the housing price in America for the last one year. Snatching the opportunity, several real estate companies did boost their price to gain more revenue. Compared to the previous years, the sale price has slightly increased in most of the big cities. A house for young couples can be roughly estimated about 229,000USD, which rose 5.5%. Notably, there were more than 20 cities have recorded high price in selling properties. According to Lawrence Yun, an expert economist of The National Association of Realtors of America, the demand in real estate has remarkably arisen since summer. Multiple households desire to earn more benefit when buying a house then let people rent it. The National Association of Realtors of America has stated the top 5 cities of high pricing house are San Jose, San Francisco, Honolulu, San Diego, and Anaheim–Santa Ana. Especially in Florida last year, they record that the housing price went up so fast. This situation has resulted from the ideal occupation’s opportunity, long vacation or the growth of immigrants in the US.
On the contrary, the realtor’s supply trended downward than one year ago. Many experts have predicted that the demand might surpass the number of the supplier for the upcoming years. Thus, the customer may face with lots of financial issues if they want to possess property in the future.
The U.S. Home Sales Keep Attracting the Foreign Investor
The National Association of Realtors of America has released in 2017, foreigner spent 150 billion USD for more than 250,000 properties in America. Notably, Vietnam ranked 7th in the top 10 countries have citizens possess estates in the US. Vietnam has accounted for 3.06 billion USD, the same rank with Japan, Germany. There were more than 3.06 billion USD since this report has excluded the people that asked their family who is currently living in the US to undersign the estate for them, and it continues to go up in the future.
The reason why people aspire to own a house in America since its buying process does not require much time, only two weeks and they will have a house. People can use the house for renting while living in their home country and the money they earn from real estate is stable, safe and much higher than in their countries. Moreover, US citizens prefer renting a house rather than owning it since they think that is too pricy. What is more, in some countries, when foreigner tends to buy a property, they can only use for 50 years then return to the state, however in the US foreigner has the right to purchase property and keep it forever.
The foreign investor’s tendency has shifted in these years. For example, regarding the Vietnamese investor, in the past they prefer investing in the western area since there are lots of Vietnamese living here, nevertheless, in the past three years, they try to seek for houses in the eastern land since it gathers high quality’s universities and contains high opportunity’s employment. Not only Vietnamese, but many nations also find the way to the US with the hope to have a good life, better jobs, and better education, that is the reason why the US’s immigration is on overload condition for a long time.
The country’s real estate industry has faced a tough year in 2018 when the demand exceeds the supply that leads to the rise in the sale price. It may result in lots of trouble about finance or the living time, so the customer needs to be extremely careful when deciding to own a house in the US. Furthermore, people have to consider choosing reliable real estate agency which proves high quality and acquire safe security to avoid the scam. Hopefully, this situation might change in the following years that also help to build a stable economy for the country.