US property market showing signs of recovery

The US property market has picked up to the extent there is now a shortage of homes for sale in some cities, according to the National Association of Realtors (NAR).

Figures compiled by the organisation showed that 5.24 million existing homes were sold during July, up from 4.89 million the previous month.

The report also revealed that the number of residential properties sold last month was five per cent higher than in July 2008 - the first year-on-year growth in the US market since November 2005.

Lawrence Yun, chief economist for the NAR, attributed the rising sales figures to improved affordability and the housing stimulus tax credit tempting first-time buyers to enter the market.

However, he warned that the availability of property at affordable prices may not continue for long.

"In some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower-priced homes has spiked, and a lack of inventory is becoming a common complaint," said Mr Yun.

The most recent edition of the S&P/Case Shiller 20-City Home Price Index showed that property values are beginning to recover, climbing by 0.5 per cent during May.

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