America turning the corner

The latest data from the American housing market has offered a potential light at the end of the tunnel, suggesting the decline in the market may be easing.

According to the latest research from the respected Standard & Poor's/Case-Shiller House Price Index, the average property price in America fell by just 0.5 per cent over the course of June.

This is down from average falls of two per cent and over earlier in the year.

However, prices are still down a record 15.9 per cent over the course of the last year, according to the survey, which examines prices in the country's 20 largest cities.

Las Vegas recorded the biggest fall over the period – of some 29 per cent.

This was followed by Miami which was the next biggest faller, declining by 28 per cent in the year to July, according to the S&P/Case Shiller index.

In addition, the findings were supported by statistics from the US Commerce Department, showing sales of single-family homes were up 2.4 per cent last month to a seasonally adjusted rate of 515,000.

This is an increase of 12,000 properties from the figure of 503,000 recorded in June.

Furthermore, the inventory of homes for sale fell to 5.2 per cent the lowest since October 2004.

However, the positive figures may be attributed to "economic stimulus payments" initiated by the government.

The first of more than 130 million of payments from Washington were scheduled to be sent to Americans' mailboxes or bank accounts starting May – a factor which may have spurred the market.

Yet, this one off payment is unlikely to reduce the long-term downturn in the market.

Chris O'Toole