US house price gains 'slide in October'

Residential property price growth in the US slowed down in October , new research reveals.

According to the Clear Capital Home Data Index, gains last month stood at just 0.6 per cent, a significant fall from the 3.5 per cent rolling quarter increase registered in September.

The report noted that year on year US residential real estate values have fallen by 2.8 per cent nationwide.

Director of research and analytics at Clear Capital Dr Alex Villacorta was not overly optimistic about the future performance of the country's property market.

"Short-term gains have been nearly eliminated, while longer-term performance measures point to mostly negative territory through the turn of the year," he stated.

Dr Villacorta explained that the driving factors behind the slowdown are weak demand, low consumer confidence and the consistent flow of distressed properties coming on to the market.

Earlier this month, the Wall Street Fraud Watchdog predicted that US house prices will drop by ten per cent over the coming year and urged investors to be cautious when buying real estate in the nation.
 

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