It has been a turbulent year in the United States, to say the least, with either direction of the presidential election having seismic consequences. While the vote went to Joe Biden, the consensus ‘back to normality’ selection, it has still had a significant impact on several markets, with the immediate surge of global stock markets indicated as such.
Despite everything, perhaps the market most expected to experience a decline has thrived in recent months. The US housing market is hot right now – as are several other housing markets around the world – presenting a grand opportunity to those looking to expand their real estate portfolio.
A tight but fast-selling US market
In March and April, as was to be expected in the US and seen worldwide, the housing market tumbled despite a strong start to the year. Since then, demand for house purchases has increased significantly, creating a tight, fast-moving market. It’s a strange situation to see in a country reluctantly coming out of recession, but buyers and sellers aren’t scoffing at the opportunities presented by low rates.
As detailed by the Mansion Global housing market analysis of the US, houses are selling much faster than they were this time last year. Due to limited inventory, properties are spending an average of 13 days fewer on the market than in 2019, continuing the streak of such speedy selling to nearly two months. It has also been found that sellers can list prices higher in 2020, showing over 12 percent growth on the listing prices of 12 months ago.
The combination of buyers being quick on their feet and sellers being able to tickle up prices has created a hot housing market in the United States. However, even though many global analysts are optimistic about a Biden government, his introduction will likely impact the housing market – in which direction is yet to be seen.
Real estate opportunities abroad
Just as the US housing market has altered this year, so have others around the world. Perhaps the most relevant to potential US buyers is that of the UK. The nation has seen a rush in housing purchases recently, with a couple of incentives combining to make the market very favorable for buyers.
The first factor is the widespread adoption of online mortgage comparison brokers like Trussle. As a free platform, those seeking to get a new mortgage or refinance on their existing deal can easily do so, allowing them to get the best rates possible. The presence of Trussle has given lenders the need to compete, which has allowed users of the comparison broker to make the most of reduced rates and save money.
Along with cost-free and convenient access to the best rates, the nation’s chancellor gave the market a post-summer lift. Usually in the UK, new house buyers need to pay a fee called Stamp Duty. Until the end of March, however, a Stamp Duty holiday remains in place, which has inspired would-be home buyers to get in while the going’s good, resulting in asking prices going down.
On the flip side, there are several other emerging luxury markets abroad that deserve the attention of your real estate portfolio. Perhaps the most prominent right now is Frankfurt. The luxury real estate market has seen a massive uptick over the last year, primarily due to so many banks leaving the Brexit-bound UK to set-up shop in the German city. Also of note is Moscow, due to several of its luxury projects being completed recently.
Opportunities appear to be popping up at home and overseas for would-be property buyers and even those looking to sell their real estate.