July 6, 2010
Several news reports out of the U.S. this week suggest the real estate market there may be catching a break.
U.S. house prices increased 7.9% quarter over quarter according to the Clear Capital Home Data Index. In addition, Clear Capital found that the number of REO (bank-owned) properties continues to drop nationally.
Over the last quarter just 22.7 percent of homes sold were REO properties. This is 19.8 percentage points less than its peak in the first quarter of 2009.
In other good news, the value of U.S. farmland has been rising, cool!
Land and buildings on American farms averaged $2,140 an acre at the start of this year, up 1.4 percent from $2,110 a year earlier, the U.S. Department of Agriculture said.
The most expensive farmland in the U.S. was in Rhode Island at $13,600 an acre, followed by New Jersey at $13,100, according to the USDA.
It’s not all peaches and cream though as more than 14 million U.S homeowners are currently underwater on their mortgage and Deutsche Bank recently projected that number to increase to 20 million by the end of 2011.
Let’s hope the good news keeps coming and the U.S. real estate market can join that of Canada’s in relative stability.