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The UK’s number one hotspot for rental yields

It is a know fact that the best valued properties in the UK are in the North of England but the north-east leads the way in terms of value and return. This is due to a mix of low property prices, high rental yields and good prospects for rising property prices in the future. If you look at the UK House Price Index, the north-east of England is by far the cheapest location to buy a house , the average price for a house is just £125,650 as compared to the national average house price across England being £251,233. In the north-east you can find brick terraced houses for as little as £49,900 and some of these come with tenants in place, there is a great opportunity for investors to enter the UK’s buy-to-let market at a low entry point with consistent and healthy returns. While the average national return on rental properties is just 4.2%, the North East property often delivers more favourable returns of up to 10%. The north-east region is made up of Tyne and Wear, Teesside, County Durham and Northumberland, it has a population of around 2.6 million.The biggest city in the North East is Newcastle but there are other great investments areas like Sunderland, Durham, Bishop Auckland, North Shields, Hartlepool, Hexham, Darlington, Chester le Street, Stockton-on-Tees, Jarrow and Morpeth. The economy in the north is starting to see an upturn in recent years, the economic gap with other parts of the country is closing. According to the recent Government statistics, the North East of England has one of the fast growing economies in all of the UK, estimated to be worth £35.5bn. We have seen the opening of many great new manufacturing plants in the north-east, examples of these are Nissan in Sunderland and Hitachi in Durham. The Sunderland Nissan factory is Nissan’s biggest car plant globally and ranked among the world’s top five leading car-makers. The north-east is a very popular student location, Newcastle has the largest student population in the north-east and has been named as the UK’s ‘Best University City’ for the past three years running by MSN .You also have Sunderland, Durham and Middlesbrough where there are also great universities. There will always be a demand for accommodation in university towns and cities, houses in the right locations are highly sought after. Newcastle was recently voted as the best city for quality of life and also the UK’s happiest city. Durham has its famous University with a thriving commercial sector alongside it. Sunderland and Middlesbrough have been voted numbers 1 and 2 respectively as the best places to invest in student property. The north-east is competing to become the UK’s main digital hub, there has been huge investments in recent years, the North East is home to IT companies like Sage, Hewlett-Packard and ZeroLight who all contribute to the regions digital and IT sector, this sector is estimated to be worth around £1.1bn to the economy. But it is not just the Digital Hub or Universities that are tempting companies away from the South, there is no doubt that commercial office space has played a major part. Commercial office space in the North East is approximately 30% cheaper than in other cities around the UK and is almost 68% cheaper than in London. Even-though property prices are low as compared to other parts of the UK all of the above factors mean there is a strong demand for property to rent. The influx of students and corporate employees are pushing a strong rental market. One recent study done shows that tenant demand in the north-east experienced the highest increase of any UK region in 2017. Another recent report from The Telegraph says the north-east England offers some of the best prospects for buy to let investors. Now is the time to invest in property in the North East of England, with offices in Newcastle and Manchester our team of property specialists have expert, in-depth knowledge of the best buy-to-let opportunities in North East of England. If you would like more information about these UK buy to let opportunities please email Mike or any of the team at Global at [email protected]

Liverpool Investments – High Yields & Low Property Prices

Global Investments Incorporated has dominated the USA buy two let market for the past nine years and is now embarking on the UK market in 2020 and 2021. With many of their overseas and domestic US and UK investors wanting to diversify their portfolio and buy in both the UK and the US. If you’re looking for a buy to let property with an impressive rental yield, Liverpool is a great choice. Liverpool property investment boasts the highest rental yields in the country, with six Liverpool postcodes making the Totally Money list of the top 25 buy to let postcodes in the UK. The average Liverpool rental yield is around 5.05% – far higher than cities like London which has an average rental yield of 3.05%, and Southampton which is 3.55%. In a further study voted Liverpool to be the best UK city to be a landlord. Liverpool has one of the highest average rental yields in the country. The property market in Liverpool also generates an average rental price growth of 2.65%. The impressive yields on offer wouldn’t be possible without the affordability of the Liverpool market. The low entry level in this city is a huge reason to invest in the areas rental market, and make Liverpool investment an affordable option for both first-time investors and those looking to grow their portfolio. Combined with the high rental costs that come from Liverpool property, these low property purchase prices make for some of the best rental returns in the country. With everything going on in the world today many people wonder “ is buy to let worth it in 2020 and 2021? “, especially because 2018 and some of 2019 was such uncertain years for the UK property market. However, with a lower cost of entry, the things that the Liverpool property market of 2020 and beyond has in store can provide a lower risk investment strategy. Investing in Liverpool couldn’t be easier and there are so many opportunities out there for savvy property investors. So how does the average house price in Liverpool compare to other UK areas? According to Zoopla data, the average price of a house in the UK is currently around £319,967, compared to the far lower average Liverpool property prices of only £174,082. These low Liverpool property prices allow investors to get more for their money compared to UK property investments in other areas, especially in the South, specifically London, where average property prices are around £671,989. Investors have discovered that for the price of one London property, they could get a couple of similar properties in Liverpool while also benefitting from high yields. With a lower than average house price in Liverpool and high rental income, this Northern city is one of the best locations for buy to let investments in the UK and is forecast to be one of the hottest spots to invest in 2021. Global Investments Incorporated have signed up agreements with some of the best UK developments and will be offering these opportunities to their investors in the coming months. We currently have opportunities in Liverpool with prices starting from £85k and assured returns up to 8%. For more information on our Liverpool opportunities please email Ian or Mike at [email protected]

Regardless if you are RED OR BLUE… Property Prices are on the Rise in cities like Cleveland and St. Louis

Based on new data from Redfin, the median U.S. home price in blue counties nationwide rose 13.1% from the previous year to $346,000, during the four weeks ending September 6, 2020. Prices rose 11.5% to $259,500 in swing counties, and they were up 10.6% to $209,000 in red counties. “Homeowners are benefiting from a strong housing market even during this deep recession,” said Redfin chief economist Daryl Fairweather. “Home values are up, which is great financial news if you’re a homeowner, regardless of your politics.” “But rising prices and tight supply mean it’s a tough landscape for first-time homebuyers,” Fairweather continued. “Many of them have long been priced out of urban blue counties and are searching in suburban swing counties and more rural areas. This trend is being exacerbated by the pandemic-driven work-from-home culture, which is causing many homebuyers to place more emphasis on indoor and outdoor space and less on commute times.” For this analysis, counties were classified as “blue” if the 2016 Democratic presidential candidate won by more than 10 percentage points, and classified as “red” if the 2016 Republican candidate won by more than 10 percentage points. Counties were classified as “swing” if neither candidate received more than 55% of all votes. Housing supply is tightening most and homes are selling fastest in swing counties, but blue and red counties aren’t far behind The total number of homes actively listed for sale was way down from a year earlier in all areas, with supply tightening the most in swing counties. Total housing supply dropped nearly 35% year over year in swing counties in the four weeks ending September 6, compared with a 32% dip in red counties and a 22.2% decline in blue counties. “Supply is dropping the most in swing counties because they tend to be made up of suburban neighbourhoods, where there are far more homebuyers than sellers right now,” Fairweather said. New listings were up most in blue counties (12.4% year over year) in the four weeks ending September 6, while they were up 7.1% in swing counties and 3.8% in red counties. Pent-up selling demand is one reason why new listings rose most in blue counties in August: New listings for homes in blue areas plummeted to a low of -47% year over year in the four weeks ending April 26, bigger than the 36% dip for red areas and the 43% decline for swing counties. Additionally, homes sold fastest in swing counties, with 43.5% of homes going under contract within two weeks during the four weeks ending September 6, versus 39.6% for blue counties and 35.3% for red counties. The typical home that sold during those four weeks went under contract in 43 days in blue counties, 44 days in swing counties and 62 days in red counties. Sales were up most in red counties, but pending sales were up more in swing and blue counties The number of homes sold in the four weeks ending September 6 rose most in red counties (15.9% year over year), compared with an 11.6% increase in swing counties and an 11% increase in blue counties. Sales in blue counties were hit hardest at the beginning of the coronavirus pandemic, down 34.8% year over year in the four weeks ending May 31 versus a 30.9% decline in swing counties and a 23.7% decline for red counties. Pending home sales rose most in swing counties, with a 29.6% year-over-year increase in the four weeks ending September 6, trailed closely by a 29% increase for blue counties. Pending sales were up 26.2% in red counties. The fact that pending sales are up more in swing and blue counties reflects the fact that sales in those areas took a bigger hit at the beginning of the pandemic and thus have more room to grow. The first 2020 Presidential debate in Cleveland The Health Education Campus of Case Western Reserve University and Cleveland Clinic hosted the first presidential debate on Tuesday, September 29, in its Sheila and Eric Samson Pavilion. This year’s event will mark Case Western Reserve’s second engagement with the Commission on Presidential Debates; in 2004 the university hosted the Vice Presidential debate between Dick Cheney and John Edwards in the Veale Convocation Recreation and Athletic Center. About 43.6 million people watched the October 5 discussion; viewing projections for this year’s event exceeded 100 million. So is Ohio considered a swing state ? Polling indicates that Ohio has turned into battleground territory for the 2020 election, it has a history on its side in establishing itself as not just a battleground, but a must-win state to achieve victory in the presidential campaign. All of the above information is backed up by the facts and statistics regarding the increase in property prices and the decline in homes available for sale in the Cleveland district. Charts supplied in this blog courtesy of Redfin, outline this based on the sales of 2020. The message is clear, now is the time to purchase in Cleveland Ohio before the prices increase to such that the net returns are no longer what they used to be. Global Investments saw the same during the Detroit boom five years ago. If you have been looking to purchase in Cleveland but still sitting on the fence do not be the person who stated “ I should have bought five years ago “

Saint Louis housing market is rocketing despite a pandemic.

Saint Louis is getting more and more attention recently from Overseas investors, it is not surprising really as Missouri is one of the cheapest states in which to buy a house. According to a recent study by financial technology company SmartAsset who analyzed data for all 50 states and D.C. on metrics including median listing price and average closing costs Missouri came tops for value for money.The St. Louis real estate housing market did experience many of the same setbacks onset by the COVID-19 pandemic as the rest of the US but real estate in St.Louis was very strong heading into 2020 before the pandemic arrived. It is now predicted that the St.Louis real estate market will come out even stronger once everyone has weathered this storm. Compared to single-family home sales for the same months in 2019, Metro East home sales in 2020 were down only by single-digit percentages — 3% from March 2019 to March 2020 and 6% from April 2019 to April 2020. This is due to relatively strong unemployment numbers, historically low interest rates, and high demand for the St.Louis real estate, we may see St.Louis at the forefront of a national recovery. Overseas investors are now realising that if they position themselves well now, they could benefit in the long term when demand increases further and prices start to rise.If we look at the Saint Louis housing market today we can see that the median home value stands at $131,350. The last 12 month appreciation rate for Saint Louis was 3.8% and taking into consideration a global pandemic it shows how strong the St.Louis housing market actually is. We also see that the rental market is still very strong, the median rent price stands at $1,100 with a Price-To-Rent Ratio of 9.95, one of the best in the US.Building a rental property portfolio today makes more sense given the current market conditions in Saint Louis, the trends are in favour of the Overseas Investor, interest rates on traditional loans are historically low, strong cashflow from high rental demand and the strong price-to-rent ratio suggests home prices will further increase rental demand.The Coronavirus has added to the low level of available inventory in Saint Louis and even those who are willing to buy are struggling to find the right property, therefore those who can not buy are forced to rent, investors are in line to benefit from even higher occupancy rates in the future. Some parts of the Metro East real estate market are so tight that homes go under contract in a matter of hours.Fox News recently ran an article which summarises the Saint Louis market very well, they said the market is experiencing the “slingshot effect” They said the market slightly paused during the COVID shutdown and now it has rebounded at record levels. Real estate expert Kathy Helbig, Experience Realty Partners, says buyers are hitting the market in droves. Interest rates dropped during the shutdown and now they can afford to spend more on a house and they want to.Global Investments are also experiencing the same low levels of inventory in St.Louis, all of our properties are normally sold within hours of been listed on our website but be assured we are doing our best to bring you the best priced properties when they do become available.If you want to be added our mailing to see the properties before they are listed please email [email protected]

Demand and prices surge in Cleveland for turnkey investments

Cleveland Ohio is located on the southern shore of Lake Erie, about 60 miles west of the Pennsylvania border. Downtown Cleveland has experienced a renaissance over the past 5-10 years with an estimated 25 Billion in development completed or planned since 2010. Occupancy rates are at an astonishing 98% and home sales are up 12% year after year making this market a dream for the overseas or domestic investor. Great house prices and fantastic cash on cash returns with a huge potential for growth given the huge investment getting pumped into the city via companies like Amazon, Ford and individual investment from the likes of Dan Gilbert who helped rebuild Detroit. The big question now is how long can prices availability and returns like this last ? Unfortunately for potential or current investors looking at investing in Cleveland it looks like the clock is ticking. Prices are on the rise and the supply of these types of turnkey homes is down and finding good tenanted or renovated properties in good neighbourhoods is getting tougher. As a company Global Investments Incorporated have been selling in Cleveland for the past 3 years and have sold over 1000 houses in the city. Good Single Family tenanted properties have been sold in and around the 35-45k mark and for a good Duplex an investor would look to pay around the 50-55k mark. Due to huge Demand and a lack of supply the prices are slowly creeping up. “ We have been expecting this for some time now. Very similar to what happened in Detroit 3-4 years ago. Cleveland is still an incredible opportunity for both the overseas and the domestic buyer but any client looking at getting involved needs to look at higher prices for these types of houses. The prices cant stay the same with such demand, lack of supply and huge investment into the city. These price increases were inevitable. I still think as a company we have another 12 months in the city before prices get too high. I think for a good, well located single family home any client should be looking at spending around $45k to $55k and for a well located Duplex they will need to look at between $60k and $80k. “ Mike Moodie CEO Global Investments Incorporated Although prices are on the rise Cleveland Ohio still offers an incredible opportunity for any cash buyer to get well priced tenanted houses with great cash on cash returns and good appreciation over the coming 5-10 years. If you would like more information on our Cleveland Ohio Investments or have any general questions on the US market place and what opportunities are available please contact any of the team at Global at [email protected]

Growth in the Suburbs

USA Real Estate in the suburbs is real and growing, as coronavirus changes the way people live. As the real estate market began to recover in May, home searches in suburban zip codes jumped 13%, according to realtor.com, one of the largest real estate listing websites. That doubled the pace of growth in urban areas. More than half of the nation’s 100 largest metropolitan areas are seeing increased interest in the suburbs. If millennials once piled into the cities, fuelling downtown renewal and growth, apparently they are now piling out. The stay-at-home orders brought on by coronavirus have more potential homebuyers looking for properties in the suburbs. Millennials are now the largest cohort of buyers. While homes are spending more time on the market overall, due to complications surrounding closings, both suburban and rural markets are not experiencing that lag time as much, due to very strong demand. “This migration to the suburbs is not a new trend, but it has become more pronounced this spring,” said Javier Vivas, realtor.com director of economic research. “After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs.” More than half of the nation’s 100 largest metropolitan areas are seeing increased interest in the suburbs. Real estate agents in the New York City area have reported strong demand in the surrounding suburbs, as contracts on Manhattan apartments plunged 80% annually in May, according to Jonathan Miller of real estate appraisal firm Miller Samuel. This new flight to the suburbs is clearly benefiting the nation’s homebuilders, who have seen a much quicker recovery than they ever expected. “There’s no question that there are people who are fleeing the cities. There’s no question that the second home has been a place of refuge. There’s no question people are rethinking whether they want to be in high rise rentals with common spaces as amenities vs. having a home of their own with a backyard,” said Stuart Miller, chairman and former CEO of Miami-based Lennar. Nearly a third of Americans are considering moving to less densely populated areas in the wake of the pandemic, according to new data from Harris Poll. That may foreshadow a shift that would have a major impact on residential real estate sales and home prices. Demand for homes, say brokers, is fuelled not only by fears that coronavirus infections in densely populated urban areas could rise again next winter, but also by fundamental shifts in demand from in-office to remote workers, “First off, it’s the virus, and people are just feeling done with small apartments. Then came the protests,”. People are saying “they just can’t handle the city right now. They’re saying they want a quiet yard and most of all a home office.” This change in perspective may be bad news for large Cities but it is certainly good news for overseas investors purchasing buy to let homes in the suburbs just outside of the City. Cleveland is currently Global Investments’ most popular location for sales and enquiries. Now is the time to get involved before prices increase. Cuyahoga County records state home prices are up for 7th straight year ! As an example, The median single-family home price in Euclid had dipped to $35,000 in 2011 before the steady recovery began, reaching $66,000 in 2018 and finally to $74,950 last year. Contact Global Investments today. visit www.globalinvestmentsincorporated.com or email [email protected]

Manchester the UK’s fastest growing economy

Manchester is the capital of the North and the housing market is booming, according to information from Hometrack, property values in Manchester are growing at twice the rate they are in London. Manchester has been the focus of the UK Government’s plans to turn the North of England into a powerhouse, helping the area to compete with London and the South.Manchester is part way through a multi-billion pound regeneration program, improving all areas of the city centre, airport, and infrastructure, including the iconic Spinningfields and other areas like Salford and the Northern Quarter.There is investment taking place all over the city and one of the biggest project was the new Media City, to date £650m has been spent on the new Media City which is a 200 acre business hub for media, digital and creative. The BBC’s move to Salford’s Media City was huge for the economy, Granada and ITV also relocated to Media City making the area the UK’s new media hub.Over 70% of the FTSE 100 companies now have a presence in Manchester, and 50 international banks, with an estimated GDV of over £50bn are located in the city. Last year it was announced that Manchester International Airport, which is already the UK’s largest airport outside of London, is to receive a £1bn investment. Greater Manchester’s population now stands at 2.5 million and increasing daily. Between 2002 and 2015 the population has increased by a massive 149%, making it the fastest growing city in the UK. Due to the growing career opportunities available in Manchester, the city is becoming an increasingly popular choice for young professionals. For this reason, the rental market is soaring, and landlords are finding that potential yields are a lot higher than those offered in London and other UK cities.Greater Manchester is home to one of the largest student communities in Europe boasting around 100,000 students between the local universities. This huge population of students just goes to show that Manchester is a first-class destination for higher education.As you can see the city is booming but Manchester does have a big supply issue, partly due to nothing being built between 2008-2012 in the city centre, but also due to the ever-growing demand for city centre properties. It is anticipated that by 2025 the population of Manchester City Centre will increase by a further 125,000.The most demanded properties in Manchester are city centre apartments which are great for renting. Premium new apartment developments in the popular areas like Deansgate, Piccadilly, Ancoats, Victoria, Salford always sell quickly due to their ideal location.Manchester really does offer something to all residents and visitors. From walks in the countryside to all-night dancing and everything in between, Manchester is a perfect lifestyle city. In fact, it was named as the most desirable UK city in which to live in the 2015 Global Liveability Ranking and lets not forget its home to two of the worlds best football teams.Global Investments are proud to announce the launch of Regent Plaza Manchester, a brand development in the heart of the city with 525 units, all of the units are larger than average city apartments. This development has many exciting features including a private resident gym, 24 hour reception and concierge service, prices start from only £157,000.If you would like more information on this new fantastic development please email [email protected]

Rental property investment could be the safer option in today’s struggling stock market

With COVID-19 causing unrest and uncertainty across the globe, investors could benefit from a bricks and mortar solution to their concerns. Coronavirus is dominating every headline and every conversation, and seems set to do so for the foreseeable future. This has left people around the globe concerned and confused, following official measures such as regular hand-washing working from home and self-isolation. Everything from the healthcare industry to the corporate world has been hugely impacted by the spread of COVID-19, so it’s no surprise that investors are feeling more than a little cautious at the minute when it comes to putting their money down. This can be seen most clearly in the stock market. The FTSE100, NASDAQ and Dow Jones have all seen catastrophic drops recent weeks, crashing harder than we have seen this century. So, for those looking to find a safe home for their money and an astute investment, many investors are looking for something more concrete: buy-to-let property. Could this be the solution for your investment concerns? We’re going to take a closer look at the situation surrounding the coronavirus, the stock market and rental property investment. COVID-19: the impact on the stock market The word ‘disaster’ has been thrown around a lot recently when describing the state of global stock markets. More than once, stock market commentators have compared the current situation to the devastating US stock market crash of 1987. Just a few days ago — on 12th March — the Dow Jones industrial average declined 2,353 points in what was called a “historic selloff” by The New York Post, one which hadn’t occurred since Black Monday in 1987. Black Monday was the name given to 19th October 1987, when the stock market dropped by 22%. The Dow index closed that day at 1,738.74, down 508 points for the session. To put that in perspective: on 16th March 2020, the Dow fell a record-breaking 2,997 points. Investors are turning to rental property As the coronavirus continues to dominate, Global Investments Incorporated have received a significant number of enquiries for US buy to let properties. These enquiries are coming from all over the world, from areas like Dubai, Singapore, the UK and France. This growth in interest can be seen as investors look to put their money in something demonstrating greater stability right now. “ In these trying times, we’re all looking for something to anchor us. This is true of our investments too, which is why increasing numbers of people are opting for bricks and mortar investments instead, particularly single and multi-family homes under good management. “ Mike Moodie . CEO Global Investments Incorporated. Why choose buy to let? Property investment offers two distinct forms of revenue — a monthly rental income from those letting the property and of course, the lump sum received when a property sells in the future with potential capital appreciation. Buy-to-let investment is seen as a longer-term process, which, considering today’s climate, is a good thing. The coming weeks and months may be uncertain for us all, but one thing is for sure : people will still need property both during and following the coronavirus outbreak. Property investment means putting money into something tangible — something that can be seen, touched and experienced by both yourself and others. In times of uncertainty, there is comfort in knowing that your money is yielding a strong return and growing in value as the months and years pass. Looking to take advantage of buy to let opportunities? Speak to a member of our team today and we’ll help guide you through the process. Email Mike or any of his team at Global at [email protected]

Overseas Investors Plunge into the US Housing Market as a Coronavirus safe Haven

In the past few weeks Global Investments Incorporated has seen huge traffic on their website and a large increase in enquires for US buy to let properties. The majority of enquiries are coming from areas like Dubai, Singapore and the UK. Many investors from France as well. So mainly overseas and not domestic US Buyers. The Manchester based firm believe that the increase in traffic and enquiries is down to the overseas buyers looking to invest Capital into what is perceived to be a more stable market that is not having much effect from then virus. Investors from all of the Globe are looking for the calm in the Coronavirus storm, and it seems that US residential real estate could be the answer. Specifically single and multi family homes that are under good management. Global Investments Incorporated have been selling single and multi family homes in areas like Detroit, Cleveland, St Louis and Up state NY for the past 8 years. They also offer management and accountancy services so its a real hands off investment for the buyer. In the past few weeks the company has seen a massive increase in enquiries. CEO Mike Moodie said that that he feels this is a direct result of the coronavirus. “ I think it may be people looking to invest capital into what maybe perceived as more stable areas that don’t have as much as an affect like the stock market currently.“ Mike added “ I think people are looking at bricks and mortar as a hard and more safe asset to buy right now. Real estate in general is not directly related to the stock market. Also in general the US housing market has always tended to do quite well in times of market volatility. “ “ And it’s not just buyers from the likes of Asia etc. We have seen an increase in traffic and enquiries from areas like the UK, France and also some parts of the US and South America.” Global Investments are currently selling houses mainly in Cleveland Ohio, Detroit and St Louis. For further information please email Mike or any of the team at Global at [email protected]

The 2020 USA HOUSING REBOUND

If you have been reading our news articles over the last few months you would have seen that inventory levels are becoming an issue for the US housing market. The solid economy and strong employment numbers are starting to fuel US housing sales, mortgage rates dropped below 4% this past year in the U.S, and this opened the door for many people to refinance current loans. One comment which may seem a bit excessive was made by realtor.com, they predict residential property inventory to “evaporate” in 2020., they state ”it will make it more challenging for buyers to find a home despite attractive interest rates,” the Santa Clara, Cal.-based company states. The driving force behind this evaporation is “Millennials” their buying behaviour has become more aggressive as they want to invest now as the market is rising. Apparently, younger buyers are eschewing inner-city living and have their sights set on 1,800 square-foot homes in the suburbs, with good neighborhoods and decent schools. It is predicted that Millennials will take more mortgages than any other group in 2020. According to other US property sites we are on the brink of “bidding wars” thanks to low mortgage rates and thin residential housing inventories, sellers can expect bidding wars in 2020, Redfin reports. “Low mortgage rates will continue to strengthen home buying demand, but due to a lack of new homes for sale and homeowners staying put longer, there will be fewer homes on the market in 2020 than in the past five years,” the company predicts. “More demand and less supply mean bidding wars will rebound in the first quarter.” While this all seems very positive for the active investor today we must watch the market closely in 2021 onwards as low montage rates are what fuelled the last crash in 2008. CNN stated at the being of the year that Inventories in the U.S. housing market are at multi-year lows. They state that the U.S. housing market is riding high right now but we need to keep an eye on what could be around the corner. The National Association of Home Builders/ Wells Fargo Housing Market Index rose to 76 in December— the highest reading in two decades. Taken at face value, the data suggest that the US housing market is on track for continued strength. The same argument is being voiced by Forbes, they state 2020 will be a challenging year for the housing market. On the one side, there’s a strong US economy that has driven the unemployment rate to record low levels, boosting disposable income, which makes a bullish case. Then, there are low mortgage rates and housing shortages, which add to the bullish sentiment.The Case Shiller Home Price Index in the US reached an all-time high of 218.27 Index Points in September of 2019, making it difficult for first-time home-buyers to afford a home. But maybe we should be listening to Fannie Mae (The Federal National Mortgage Association) as they are the ones on the front line when it comes to mortgages. They state that “Housing will recession-proof the U.S. economy in 2020” The U.S. housing market will be an “engine of growth” for the economy in 2020, dispelling the risk of recession, according to Fannie Mae Chief Economist Doug Duncan. “Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years,” Duncan said. “We now expect single-family housing starts and sales of new homes to increase substantially.” “We now expect single-family housing starts and sales of new homes to increase substantially, aided by a large uptick in new construction as builders work to replenish inventories,” Duncan said. “Despite the expected increase in the pace of construction, the supply of homes for sale remains tight and strong demand for housing is continuing to drive home prices higher.” No matter which opinion you take or which voice you listen to it is clear that 2020 is going to be a very active year for the US housing market, some say the biggest in 10 years. We have seen this first hand with our inventory levels, properties are being sold quicker now than in 2018 and 2019 as prices seem to be creeping up especially in the likes of St Louis and Cleveland. If you would like to see our latest US inventory please email [email protected]