US housing market 'remains stable'

Despite month-on-month fluctuations, the US housing market has remained broadly stable so far this year, it has been asserted.

The latest data from the National Association of Realtors (NAR) noted that although the rate of transactions of existing homes fell back in September compared to August, they are still 11.3 per cent higher than the figures recorded in the same month in 2010.

Lawrence Yun, chief economist at NAR, commented: "Existing home sales have bounced around this year, staying relatively close to the current level in most months."

He explained that one of the biggest challenges for the US residential real estate sector at the moment is the availability of credit.

Mr Yun pointed out that many potential buyers are unable to take advantage of the affordability of properties on the market because they are being denied a mortgage, adding that the annual rise in the number of sales "speaks to an unfulfilled demand".

One US market that appears to be recovering is Manhattan, with senior vice-president and director of Brown Harris Stevens Glenn Minnick recently writing for Global Property Guide that both sales figures and prices in the New York borough gained ground during the third quarter of the year.

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