US property backed by Bernanke

The US property >market has shown "some signs of bottoming" in recent times, US Federal Reserve chairman Ben Bernanke has claimed.

In an upbeat message, Mr Bernanke said the economy as a whole is also likely to be out of recession by the end of the year, something that may boost the property market.

He noted that "increased affordability" due to lower prices has helped raise demand for homes and also observed that the backlog of unsold new-build homes has declined, something he labelled "a precondition for any recovery in homebuilding".

Florida is one state that has shown positive signs of market growth as prices have declined.

The Florida Association of Realtors revealed that in March this year sales of existing homes were 30 per cent higher than in the same month in 2008, during which time the average price had fallen from $201,700 (£133,800) to $141,300.

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