US property market 'heading for stabilisation'

While residential real estate values in the US dropped in the second quarter of 2010, prices are moving towards stabilisation, it has been claimed.

The latest Zillow Home Value Index highlighted that prices fell 0.6 per cent compared to the first quarter of the year, with the national rate of decline slowing for the second consecutive month, which is good news for people interested in investing in US property.

It was also found that conditions varied greatly across the nation, with 27.8 per cent of the Californian markets tracked by Zillow showing an increase in prices.

"Nationally, home values are moving in the right direction as rates of decline continue to slow," commented Zillow chief economist Stan Humphries.

However, he suggested that there is still some uncertainty about how home values will respond once government incentives have been removed.

Last week, Adam Samuel, director of Nubricks, said that investors looking to America should be keeping an eye on Florida property.
 

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