According to the Office of Federal Housing the home appreciation has slowed to the lowest deceleration in three decades. This is as of their September 5, 2006 press release. This is within almost every region of the country. With that said though, home prices still grew at 10.06 percent higher in the 2nd quarter of 2006 over one year earlier. No, the appreciation rates are not rampant like in years past but the growth is still there and real estate is still a great tool for investment.
By divisions though, the U.S. appreciation keeps going up from 14.08 percent in the Pacific region, followed by the Mountain region at 14.06 percent, down to the East North Central region at 4.00 percent. Even with a continued cooling market, appreciation continued to rise over the last year.
According to cnnmoney.com the mortgage rates have dropped from July highs of about 6.79 percent for a 30-year fixed mortgage to 6.40 percent at the end of September. This is higher than last year at 5.8 but overall the interest rates in relation to the last 30 years are still low.
This drop in interest rates has spurred more applications for home mortgages and re-financing of mortgages this past week according to Reuters news service out of New York. “The seasonally-adjusted index of total mortgage applications rose 11.9% in the week ended Sept. 29 to 633.9, its highest level since January(2006), according to the Mortgage Bankers Association.
According to Cushman & Wakefield experts, “The U.S. Real estate markets will gain momentum over the next year as available space continues to decline in cities across the county.� They also expect rent growth in markets nationwide. San Francisco, Boston, and Midtown NY are experiencing above average momentum due to job growth and this will continue in rent spikes. “The suburban markets of Kansas City, Louisville, Palm Beach and Miami are expected to experience growth in average rents of more than $3.00 per square foot over the next two years.
Overall, the real estate market continues to adjust for the boom tapering off but, the market continues to adjust and has continued growth areas throughout the country. Real Estate still has booming spots including a 36.65 % gain in Bend, Oregon and 28.78% gain in Boise, Idaho over the last year in appreciation according to the governments (OFHEO) division. In fact the top 20 areas had appreciation last year with over 20% gains.
The market continues to change but opportunities are all over the country. With interest rates stabilizing and appreciation in many markets the opportunities are endless.
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