US house prices rise despite increase in distressed properties

Property investors in the US may be interested in news that house prices in the country experienced a five per cent rise in value during February, compared with last year.

According to the latest data from the Clear Capital Home Data Index, the property market managed to withstand the introduction of an increasing number of foreclosed properties entering the market.

Alex Villacorta, senior statistician at Clear Capital, commented on the findings, saying that there had been an increase in the number of distressed properties becoming available.

"If the increase in demand that preceded the end of the last tax credit is any indication, home prices may dip only slightly into negative territory before getting an added boost before the April tax credit deadline," he explained.

Meanwhile, some of the regions that witnessed the greatest growth in value were Providence and Rhode Island, where prices increased by 6.1 per cent.

A recent report by Barclays Capital predicted that the US property market would begin to stabilise soon.

Like this? Then share with your friends and colleagues!