US house prices 'expected to fall further'

The value of homes in the US is expected to drop again next year, with a new study showing that many experts in the real estate sector do not anticipate a recovery until 2013.

According to the findings of the December Zillow Home Price Expectations Survey, the cost of buying a property in the US will fall by 0.18 per cent by the end of 2012, with respondents predicting a 1.97 per cent drop between the final quarter of 2011 and the same period last year.

Those questioned also believe a recovery will be slow, with values in 2016 expected to be just nine per cent higher than they are at present.

Meanwhile, the latest data to be released by the Commerce Department's US Census Bureau revealed the number of permits issued for new housing starts climbed by 5.7 per cent in November, compared to the previous month.

This outpaced expectations in the private sector, where commentators had predicted a 1.7 per cent drop in the amount of permits for new homes.

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