US property prices hit bottom

After nearly three years of falling property prices in America some economists believe the worst of the recession has hit and that 2010 will see higher real estate prices return.

A poll of primary economists conducted by Reuters shows that almost a third believed the floor had now been reached, the remaining two thirds felt there was still potential for lower prices but that in any case it would happen within the next 12 months.

While unemployment continues to grow and credit amenities being rather limited may not show encouraging indications of economic recovery it is thought the future will bring a change in fortune for what has until now been a very subdued residential real estate market.

Confidence in the US property market has been helped by opportunities such as the federal first time buyer tax credit, worth up to $8,000, that is due to finish at the end of October and it is hoped that further incentives may help to support fiscal recovery.