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Investment strategies of the U.S. housing market

Currently the state of housing market in the U.S.A. is unstable despite the sustained recovery. Although the cost of housing is growing, statistics show that prices may have reached a high and may begin to decline again.
In 20 cities of the U.S.A. an increase in prices for housing by 12.4 % was observed in July. In all these cities prices have been rising every month since April, and the largest annual increase since February 2006 was in July.
Nevertheless, the monthly price growth slowed in 15 of these 20 cities. Moreover, despite the fact that prices have risen by 21 % since March 2012, they were still 22% below the peak in July 2006. These facts indicate that the growth in real estate prices may have reached its peak.
Lending, as well as ownership of residential real estate has become more expensive because of rising mortgage rates. As a result, now it is a good time to invest in the rental sector. In 79 cities of the U.S.A. rents rose and the number of housing for rent decreased.
In Las Vegas, Orlando, Colorado Springs, Austin, Memphis, Jacksonville, Houston, Atlanta, Columbus, Phoenix and Tulsa investment can bring good returns as the supply in these cities is limited, while the average cost of renting residential property is high enough.
Rising interest rates have a negative impact on sales of residential real estate in the United States. To increase the amount of investment it is important to reduce the cost of real estate and increase the availability of loan. U.S. real estate markets are expected to remain unstable, which means that investors should expand their portfolios.