Real estate prices still falling in US
The debate continues in the States regarding the real estate recovery since the end of the recession. While some experts claim the tide has turned and that green shoots of recovery are now apparent in some regions of the USA real estate market others believe the road to have many more stumbling blocks yet to overcome.
The fact is USA real estate prices are still dropping, one price index records a drop of more than 3 per cent across 20 major cities property markets. Supply far outweighs demand at present. In a healthy climate housing supply would normally run at about six months - today it stands at more than eight months.
High unemployment continues to confound the situation as does the current credit restrictions. Recently published figures show new mortgage applications have fallen to figures last seen more than 13 years ago.
A vast amount of foreclosure properties are being held by lenders that at some stage must be released on to the market and this over supply is sure to push prices ever downwards.