US property prices at lowest level since 2002

New research has found that the
prices of property in the US have hit a ten year low.  However, many experts now believe that the market in the US
has ‘bottomed out’, making it the perfect time to buy property in the USA.

If you’re considering buying an
investment property or a second home in the US, keep reading for the latest
opinions on the US property market.

House prices at lowest level since 2002

New figures from CoreLogic show
that American house prices have fallen 7.4 per cent since October 2010.  This has led to a significant problem
with negative equity in the country, with data showing that 11.1 million, or
22.8 per cent, of US residential properties with a mortgage are in negative
equity.

According to the
S&P/Case-Shiller 20-city price index, which tracks home values in 20 major
US metropolitan areas, American house prices were down 3.5 per cent in February
from a year earlier and are now at their lowest level since late 2002.

Analysts seeing small signs of improvement

However, despite these price
falls, there is increasing optimism that the US housing market is set to begin
its recovery with some analysts claiming there are small signs of improvement.

Four in five estate agents polled
in a recent survey by RE/MAX do not expect house valuations to drop, while
seven in 10 are hopeful that prices will increase in the near future.  Those questioned also said 20 per cent
of buyers purchase their homes with cash, indicating that more US property is
being bought by overseas investors.

Margaret Kelly, RE/MAX chief
executive, said the market is ‘definitely heating up’ for real estate agents
now.  She added: “They are
witnessing a recovery across the country fuelled by homebuyers and sellers
taking advantage of a significant market opportunity.”

written by Nick Marr