US Property Market Still Shaky

Figures for new residential properties being built in the US fell in March after a small upturn in February. After February’s positive figures it had hoped that the US property market had started signs of recovery however it appears that this upturn was just a blip with March’s figures falling.

The US Commerce Department has released figures showing new residential properties rose by 22% in February and fell 10.8% in March. Building projects are down 50% on the year so far with many builders putting new building projects on the backburner over fears of a still-falling real estate market. Just 510,000 new starts have been seen this year which is a very slow start to the year.

The South is showing the most amounts of volume with the Northeast showing the slowest pace.

The real estate property market in the US is being hit in all areas – from small apartments through to luxury homes. A manor home in Greenwich, Connecticut being sold by the estate of the late Leona Helmsley has had a massive $50 million taken off the asking price recently as it had failed to sell. It was first marketed for $125 million before being reduced to $95 million in October, and now priced at $75 million.

Last July, Donald Trump sold his Palm Beach mansion in Florida for $95 million, $30 million under the original asking price of £125 million.

However such large price cuts are normally quite uncommon in the luxury property market as many of those selling have enough money to keep their properties going and would rather keep their real estate than sell it for a firesale price and therefore lose face.

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