US property market will reach bottom in 2012

Individuals looking to buy property in the US could be tempted to put their plans on hold, if the latest research turns out to be true.

The Zillow Real Estate Market report claims that prices in the country continued their decline in the first three months of the year, with the bottom of the market unlikely to be reached until 2012.

Real estate values were down three per cent over the period and have now fallen 29.5 per cent since the peak of the market in June 2006.

The news could encourage some investors to wait before making buying decisions, with more research into the market conditions required.

"Home value declines are currently equal to those we experienced during the darkest days of the housing recession," said Zillow chief economist Stan Humphries.

However, the expert did suggest that once the sector stabilises investors will see a return to growth, although this is unlikely to happen this year.

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