Florida Property Retaining Momentum, as Growing Demand Fuels Price Growth

It seems as if things are finally turning the corner in the US with over half the states recording property price rises for the last quarter of 2010. It’s thought that falling unemployment figures and a rising confidence in the market are helping to drive prices and sales upwards.

The high numbers of foreclosures are being absorbed into the housing inventory and are proving popular with buyers, and distressed sales accounted for over a third of the market. However the amount of foreclosures coming onto the market may shortly drop as the number of foreclosures recorded for January was 17% less than January in 2010.

Sales are still down by nearly 20% when compared to the fourth quarter of 2009 as home buying numbers were artificially elevated by the first-time homebuyer tax credit.

The US has experienced the same kind of tightening in lending as the UK and the big four banks lent 12% less in 2010 when compared to 2009. There is a feeling in the US that lending has been tightened up too much and that credit restrictions need to be eased.

The states of Florida and California are still attracting large numbers of Britons who choose to buy second homes here or to rent out holiday homes. The state of Florida is also proving very popular with Brazilians who are choosing to buy

high end residential homes that would cost substantially more in their own country due to the booming property market in Brazil. A property costing $1.5 million in Florida would typically cost $1 million more in Brazil. British buyers had better get a move on if they want a bargain.

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