US housing market 'improved in January'

The beginning of 2012 has been positive for the US residential property market, with the level of transactions increasing compared to the start of 2011.

According to the RE/MAX Housing Report, the number of sales completed in January was up by 3.4 per cent on the same month a year earlier, although the value of homes slid by 0.8 per cent over this period.

Chief executive officer of the organisation Margaret Kelly explained buyers are being attracted to US real estate by the low rate of interest and affordable prices.

"If sales continue ahead of last year's pace and inventory does not increase significantly, we could start to see increasing home prices this year," she predicted.

The RE/MAX survey found the number of US properties for sale dropped by 4.2 per cent between December 2011 and January 2012, while this figures is now 24.1 per cent below that recorded in January last year. 

Earlier this month, chief economist at the National Association of Realtors Lawrence Yun pointed out the declining inventory is helping balance supply and demand, which in turn will result in greater stability for US house prices.
 

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