US house prices 'stabilising'

House values in the US have continued to decline, but at a much slower rate than previously.

This is the finding of the latest Zillow Real Estate Market Report for the period from April to June this year, which registered a drop in residential property prices of just 0.4 per cent between the first and second quarters of 2011.

According to the research, this is the lowest quarterly decline in over four years.

Dr Stan Humphries, Zillow chief economist, commented: "It is very encouraging that two-thirds of markets in our report experienced home value appreciation, but we have to remember that this is coming on the heels of the worst quarters since the housing recession began."

He went on to add that the market still has a long way to go before it enters a real recovery and predicted that the "true bottom" for house prices will not be experienced until next year.

Last month, the National Association of Realtors stressed the importance of regaining stability in the real estate sector, noting that this will result in a faster and greater economic recovery.
 

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