As with countries such as the UK, it looks to me as if the US property market is also benefiting from low finance rates. While we have been saying this since the 2008/9 collapse, once interest rates return to anywhere near their historic levels we can only imagine the number of people who will struggle to maintain their mortgage payments. However, in the minds of many politicians, this is tomorrow's problem.
This short-term outlook is actually the main problem.
Is the US real estate market really booming? Even though US unemployment rates have come down in the short-term, whether this will last or not is anybody's guess, they are still painfully high. While it is safe to say the UK property market is much stronger than many had expected, do you expect the US recovery to continue?
We don’t know. The US economy has been mired in sluggish growth for several years. Much depends on how the Federal Reserve responds to an increasingly dire outlook for unemployment. Unemployment is an essential political football. As always, there is ample room for broad market changes in response to market news. One thing is sure: as prices rise, demand for homes will correspondingly increase, so there should be no shortage of options when buying your first home. I already did it by buying a house in Costa Rica. I am delighted with my new place and the decision I made.