Real Estate in the USA

Due in large part to mortgage interest rates that have remained low and in some cases continued to drop in recent years, real estate in the United States is flourishing. With no significant rate changes in sight, U.S. real estate should continue to thrive for buyers, sellers and home builders. Home sales reached record high levels in 2003 and most economists believe 2004 also will turn out to be a good year for new construction. The average rate on benchmark 30-year mortgages recently dropped to 5.41 percent, and the decline moved rates on 30-year mortgage closer to a record low of 5.21 percent.

Homes in Florida are attracting the most action. Based on various MLS listings, sales of single-family existing homes in the Sunshine State totaled 12,520 in January 2004 compared with 11,161 homes a year ago, and median sales prices rose 15 percent to $168,100. Within the borders of the Peninsula, Orlando (Central Florida), Tampa (Gulf Coast), Jacksonville (Northeast Florida) and Miami-Dade (South Florida) are the hottest selling areas.

On the West Coast, California real estate remains king. Published reports state the median price of homes in L.A. County (Southern California) was $352,000 in early 2004, an increase of 24% from the previous year. A combined 7,723 Los Angeles houses and condos sold in February alone. Meanwhile, in Phoenix, Arizona (Maricopa County), existing-home sales jumped 36% with a median cost for a resale house of $158,120. Up the valley in Las Vegas, Nevada, it is projected that 1.5 million square feet of new construction will be completed this year. Residential construction is expected to remain strong, with home builders research projecting 27,500 new home building permits in 2004.

They say everything's bigger in Texas. Longhorn Real Estate is no different as the North Texas Real Estate Information System reported 4,549 homes were sold (median price of $133,000) in North Texas in February 2004, which includes Dallas and Austin. In Houston, Texas, single-family home sales climbed 15.7 percent to 3,815 in February and total property sales - homes, condominiums and town homes - increased 14 percent to 4,692.

The Atlanta, Georgia, housing market has become one of the country's hottest during the past decade, with large amounts of new construction and turnover. Since early 2001, no month has been below 20,000 houses on the market and most have been above 25,000 or 30,000. The average price of a home sold in January was $226,000.

From the Northeast to the Southwest houses are selling. From out of the Midwest, the NAHB reports Chicago ranks as the No. 6 city in the U.S. in permits for single-family homes, following four Sun Belt cities and Washington D.C. Despite the disadvantage of having significant periods of poor weather, the Northeast, including New England and New York, boast steady real estate figures. And in Hawaii, where the weather is seemingly always perfect, single-family home sales and prices continued to move ahead in February with 163 homes sold on Hawaii's Big Island during February 2004 and a median price of $262,650, an 18.8 percent increase. There were an additional 71 condominium sales on the Big Island in February.

These are just some of the hottest U.S. locations for real estate. Truth is, from the East Coast on the Atlantic Ocean to the West Coast on the Pacific Ocean people are buying, selling and building houses, townhomes and condos at a blistering pace. Now could be the perfect time to purchase, build or construct the home of your dreams.