US property prices drop in first half of 2011

New figures have revealed a drop in US property prices during the first six months of 2011.

Statistics from Clear Capital's latest Home Data Index Market Report show values fell by 3.2 per cent during the period, although prices rose by 0.9 per cent in the second quarter.

Investors may find 2011 to be a good year to buy property in the US, particularly as Clear Capital forecasts prices will decrease by a further 2.4 per cent in the six months to December.

Values are only expected to rise in five markets: New York, Orlando, Washington DC, San Francisco and Dallas.

"We have yet to see the burst in consumer demand to avoid posting a net loss in national prices for the year," explained Dr Alex Villacorta, Clear Capital's director of research and analytics.

The report's predictions appear to be at odds with recent comments made by US housing and urban development secretary Shaun Donovan during a CNN interview.

He suggested that it is "very unlikely" American property prices will fall further over the remainder of 2011 and said foreclosures had dropped by 40 per cent compared with last year.

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