The real estate industry has emerged as one of the major industries in the United States over the passage of time.
The housing bubble in Florida, Michigan, California, Chicago, and New York has brought about a sea change in the real estate scenario of United States of America. The housing bubble has been the result of significant increase in valuations of real estates within the domestic territory of United States.
The commercial banks, mortgage lenders, and other financial organizations have played an important role in the growth and prosperity of US real estate industry. The steady rise in ownership of private properties has also helped the growth process of the US real estate sector to a greater extent.
The real estate industry in the United States mainly deals with three types of properties namely commercial real estate, residential real estate, and industrial real estate. The real estate scenario is not same in all the US states. The property valuations and ownership patterns are different for different states of US.
The real estate industry of the United States offers diverse opportunities of employment. Real estate management, real estate development, and real estate financing employ skilled professionals from the respective fields. The activities of real estate industry also includes evaluation of acquisitions, activities involving divestitures and development, designing real estate strategies, finding out different financing options, and the like.
However, there has been a slowdown in the US real estate market over the last couple of years. The process of slowdown came into prominence between the late summer of the year 2005 and summer 2006. The real estate dealers suffered from huge financial loss due to decrease in sales volume and declining real estate prices. As per the report of Barron’s magazine, the median price of new dwellings recorded 3% fall since the month of January, 2006. The real estate dealers expected the national median price of real estates to drop by 30% in the following years.
The slowdown in the US real estate industry has brought about some adverse changes in the economic scenario of the country in the recent times. Unemployment level has increased. Consumers’ spending and residential construction have also suffered from the recent slowdown in the US real estate sector.
The US federal government however, is hopeful about improving the real estate scenario of the country in near future. Effective market correction is expected to bring about some favorable changes in the real estate sector of the United States.