US housing market 'making a recovery'
By Danny Bance

US housing market 'making a recovery'

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The level of pending home sales recorded in the US increased for the 15th consecutive month in July.

According to the latest figures published by the National Association of Realtors (NAR), the organisation's index climbed by 2.4 per cent month-on-month and was 12.4 per cent higher than a year earlier.

It is not only the volume of transactions that is rising in the US residential real estate sector, but also prices, with the NAR predicting an eight to nine per cent upturn in values by the end of this year.

Chief economist at the NAR Lawrence Yun explained demand for new properties is likely to exceed supply over the coming year.

"Falling visible and shadow inventories point towards continuing price gains. Expected gains in housing starts of 25 to 30 per cent this year, and nearly 50 per cent in 2013, are insufficient to meet the growing housing demand," he asserted.

Speaking to Global Property Guide recently, Andrew Leventis from the Federal Housing Finance Agency offered a similar assessment of the US housing market to that provided by Mr Yun.

He suggested price appreciation in the US is being supported by fewer distressed sales, lower mortgage rates and the "modest" number of properties for sale.
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