US property prices 'likely to fall further'

Prices for property in the US are likely to see more falls in the next 12 months, it has been suggested.

PropertyJournalist.com founder and freelance journalist Marc Da-Silva says the sector is still struggling to kick start a real recovery - and the fact that banks in the country are yet to put up repossessed real estate for sale could further hamper growth in the future.

"There are reports coming out that they are planning on unleashing a lot of this stock on to the market over the next year or two. What this effectively will do is flood the market," he explains, adding that this will only serve to drive down prices.

Despite this, several areas are bucking the prevailing trend, with New York and Florida seeing more positive movements in real estate demand.

Furthermore, recent statistics from the National Association of Realtors pointed to a 1.4 per cent increase in US existing-home sales last month compared with September and a 13.5 per cent rise over October 2010.
 

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