US house prices down, sales up

There has been a rise recorded in the number of home sales in the US, although prices were broadly lower during the third quarter of 2011.

This is according to data published by the National Association of Realtors (NAR), which revealed that 111 out of the 150 areas surveyed experienced declining house prices compared to the same period in 2010.

By contrast, the number of transactions on the US residential real estate market increased by 17 per cent between July and September, compared to the same three months a year earlier.

NAR chief economist Lawrence Yun stated: "Home sales need to recover first - only then can prices stabilise."

He added that inventory levels have been gradually falling, which is a further positive sign for the market going forward.

At the beginning of November, the Wall Street Fraud Watchdog warned that a large number of foreclosures in the pipeline are likely to push US house prices lower over the next 12 months.
 

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