Encouraging recent figures from the National Association of Realtors (NAR) have shown that the US property market is stronger than it has been for several years. Pending sales of American property showed positive results in May and are now almost within the level of sales made two years ago.
Keep reading to discover how the US property market is beginning to recover.
US housing market the best for four years
The Pending Home Sales Index collected by the NAR is based on contract signings and the most recent reports shows monthly and annual gains in every region. The index rose 5.9 per cent to 101.1 in May from 95.5 in April. Year-on-year the index yielded a 13.3 per cent growth compared to May 2011 at 89.2.
While the data only reflects contracts and not property Ã¢â¬ËclosingsÃ¢â¬â¢ the contract closings usually transpire two months after the preliminary signing.
NARÃ¢â¬â¢s chief economist Lawrence Yun said: Ã¢â¬ÅThe housing market is clearly superior this year compared with the past four years. The latest increase in home contract signings marks 13 consecutive months of year-over-year gains.
Ã¢â¬ÅActual closings for existing-home sales have been notably higher since the beginning of the year andweÃ¢â¬â¢re on track to see a 9 to 10 per cent improvement in total sales for 2012.Ã¢â¬Â
The NAR believe that a lack of properties for sale could hold back the recovery. An estimated 15 per cent of Americans are in negative equity, meaning that millions of people are unwilling to list their homes as they donÃ¢â¬â¢t have the cash available to complete the sale.
Mr Yun added: Ã¢â¬ÅIf credit conditions returned to normal and if we had more inventories especially in the lower price ranges, more people would become successful buyers. In an environment of historically favourable housing affordability conditions, itÃ¢â¬â¢s frustrating to see some consumers thwarted in the process.Ã¢â¬Â