The US real-estate market has done well over the past few years, with many banks and real-life companies seeing huge profits.
But some experts say this is due in part to a lack of interest from investors.
1:25 US realtors are more likely to sell properties than buy them, a new study suggests.
That’s according to the results of a study that looked at the sales of US residential properties between 2005 and 2016.
This is the first time such a study has been conducted on the market, the researchers say.
They also found that US realtor turnover is rising.
The report, published in the journal Housing Finance, says there is a strong correlation between the sale and the buying of US properties.
The study found that while the share of transactions on a first-sale basis was about 50 per cent in the last quarter of 2016, this figure had risen to 65 per cent by the third quarter of 2018.
The researchers say that the rise is not due to a growing interest from US investors, but rather a change in expectations from the US government.
US realty was “struggling to meet demand from investors” and “frequently undervalued” during the financial crisis, they say.
A ‘strong’ market In the study, they looked at transactions between August 2014 and September 2018, the most recent quarter available.
The authors found that the share on a second-sale approach (between 10 and 30 per cent) was significantly higher than the third-sale (15 to 20 per cent).
The third-semester increase was almost three times higher than any other quarter.
“A strong demand for properties has resulted in high prices in recent years,” the authors write.
They add that while investors are looking for properties that offer more value, “there is a growing market for properties in a more affordable range”.
The authors also found “an increased number of US-listed properties, especially for smaller developers”.
A report released last year by the Institute for Supply Management (ISM) found that between 2014 and 2020, the share price of US housing properties was rising at a rate of about 2.5 per cent a year.
It is not clear if the ISM’s findings are directly related to the US housing market, but the authors of the new study say the trend could be a good indicator of future trends.
The increase in demand for the market is “significantly different from what occurred in the housing market prior to the crisis,” they write.
The housing market is very healthy and is a major contributor to the overall US economy.
However, in order to support the economy, the supply of housing needs to grow, and prices have not been rising at that pace.
In fact, they point out, the housing price growth rate in the fourth quarter of 2017 was the lowest it has been since the 2008 financial crisis.
They note that the overall trend of rising prices in the market has slowed recently.
They write: “The real estate sector appears to be resilient to a downturn in demand.”