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A glimmer of hope for US property market



Country:  United States

9 February 2009

There were signs that the US property market could be slowly embarking on the road to recovery, it emerged last week.

The volume of USA property sales rose by 6.3% month-on-month in December 2008, recovering from a record low as plummeting prices attracted purchasers.

Research complied by the National Association of Realtors (NAR), was healthier than economists projected, showing that pending USA home sales had appreciated 2.1% year-on-year.

Lawrence Yun, chief economist, NAR, said: “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month.”
 
Sales levels in the midwest and south in December, jumped 12.8% and 13%, respectively. Pending sales in the northeast and west however, continued to fall, slipping 1.7% and 3.7%.
 
“For people willing to accept the high probability of immediate capital loss, the recent drop in mortgage rates has certainly improved affordability substantially,” said Ian Sheperdson, chief US economist at High Frequency Economics.


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