Distressed sales 'push US property prices lower'

The rise in the number of distressed sales is causing US property prices to fall, it has been revealed.

According to CoreLogic's November Home Price Index, which was released earlier this week, the average cost of a US home - including distressed sales - reduced by 1.4 per cent on a month-to-month basis in November 2011.

This marks the fourth month in a row where real estate prices have declined, while values dropped by 4.3 per cent between November 2010 and November 2011.

Mark Fleming, chief economist for CoreLogic, said: "Distressed sales continue to put downward pressure on prices, and is a factor that must be addressed in 2012 for a housing recovery to become a reality."

Findings also showed that, excluding distressed sales, US real estate prices dropped by just 0.6 per cent year-on-year in November 2011.

This comes after the Federal Reserve Bond released the US Housing Market: Current Conditions and Policy Considerations white paper, stating that restoring the housing market in the US is key to helping the wider economy.

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