Is it a good time to buy a holiday home in the US?

Recently released data from the National Association of Realtors in America revealed that the number of existing home sales in the US is rising compared to last year and that prices too are slowly creeping upwards having dropped substantially since the financial crisis. This presents the question: is now a good time to buy a holiday home in the US? Many years ago, buying in holiday havens like Florida was immensely popular. Not only did prices seem to rise annually but developers also stepped in to meet the demand by increasing the number of properties available for sale, mainly smaller 2-3 bed apartments. However, when the financial crisis hit, the combination of a sudden and severe withdrawal of credit from the market and an overhang of supply caused by these same enthusiastic developers caused prices to collapse. While all of America was hit, Florida was worst hit with prices falling by up to 60% on some developments as sellers scrambled to release what cash they could. Now the situation has changed. Prices have fallen to a much more affordable and realistic level and credit is again available. Once again many British citizens are looking to the US for a potential holiday home purchase and seeking to capitalise on the value that is in the market. While Florida has always been a favourite location, many are also looking at a resurgent New York or the west coast in cities like Los Angeles or San Diego. For UK citizens looking to buy in America, mortgages are readily available to credit-worthy applicants. LTVs of up to 75% can be achieved and rates start at just 3.25% fixed for 15 years or 4% fixed for 30 years (yes, the US market works mainly on fixed rate mortgages but you can get Interest only or repayment options). These fixed rates at least provide long-term security and the rates are almost at all-time historic lows for a US mortgage. We can't guarantee that this is the best time to buy a property in the US but with rates this low and proices having corrected, it is certainly a lot better than it was 5 years ago. To learn more about the process of buying a property in America, read our brief guide to buying an American property here. To make an enquiry about getting a US$ mortgage to buy a holiday home in the US then please either complete our brief Overseas mortgage enquiry form here and one of our colleagues will be in touch or call us direct on 0845 1260350