It’s fascinating to look at the current real estate market when compared to 12 months prior. Property prices across the US are down by an average of 7.6%, with Florida taking a huge hit with an average decrease in price of 16.9%. California property owners have experienced an average price fall of 11.2% and New York homes have lost an average of 4.8% of value.
There is always danger in “generalizing” property trends as every real estate market is local and there are vast variations in price trends between property types which are even in the same town.
Californian average prices have tracked downward since peaking at $550,300 in the first quarter of 2006. At that time average home prices in New York State were at $283,000, a massive $267,300 less than the Californian average.
As we track toward the end of 2009 what is the current state of play between California and New York? Average home prices in California are currently at $332,600 with New York sitting at $266,000. In other words the 2 States are just $66,600 apart with New York State recording close to a 1% rise in average prices in the last quarter.
Opportunity is knocking for those willing and able to take advantage of the huge price reductions in property right across the United States. International investors are eying off US real estate with continued speculation about the investment intentions of the China Investment Corp, with a massive $300 billion US to invest in mortgage securities backed by office buildings, hotels, strip malls and other commercial property.