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 Ã¢â¬Ëbottomed outÃ¢â¬â¢, making it the perfect time to buy property in the USA.
If youÃ¢â¬â¢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 Ã¢â¬Ëdefinitely heating upÃ¢â¬â¢ 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