US property index reports price increases

Almost all areas in the US have reported property price rises in the last three months, it has been announced.

Clear Capital's Home Data Index showed that nationwide prices rose a total of 1.8 per cent within that time period, with the biggest increases occurring in the Midwest.

Detroit was the city with the largest gains in price, although this was put down to the steep decline in value of property in the region earlier in 2009.

Alex Villacorta, a senior statistician at Clear Capital, said that the lower end of the housing market was driving demand in Detroit, with first-time buyers and a large investor presence making up the market.

He continued: "The sustainability of current price gains will be challenged in 2010, given that most lenders and analysts predict a significantly larger number of real estate-owned properties will reach the markets.

British investors looking to invest in the US may want to consider purchasing a recently foreclosed property in the hope of picking up a bargain.

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