Real Estate news – USA - Calling the bottom of the property market?

After several hard years that have seen property sales volumes dramatically curbed and residential prices falling more-or-less back to 2002 levels, US newspapers are increasingly reporting speculation that the end of the bust period may be nigh. USA Today recently reported that more repeat buyers appear to be snapping up homes, "contributing to a slight uptick in existing home-sales" in the last quarter. "The majority of buyers are now repeat buyers, which includes owner-occupants who are moving up to larger or more expensive homes. Investors make up the rest of the market," it says.

But the newspaper also reports on economists' views that this plus a tax credit for first-time home buyers is still unlikely to make a big difference for now. The housing market's recovery is still faltering because of the economy and job losses it reports.

It mentions a grim housing market statistic that suggests the economists are right: "Sales of foreclosed properties and others that sold for less than their mortgage balance continue to pull down the median price because they generally sell at discounts. They represented 45 of all existing-home sales in April."

CNN reported recently that the housing market has got so bad in Las Vegas that houses are being sold in the city for only $25 000.

Please Tito: Keep your foot on the nation's interest rate brakes. If the US pattern is what South Africa's following, there's still more pain to come for property owners.

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