Hopeful signs in US market

It is widely believe that when the United States housing market starts to improve, the prospects for property around the world will look up, so it is very encouraging to see some positive numbers starting to emerge from this quarter.

The US National Association of Realtors, for example, has just reported that existing homes sales rose for the third consecutive month in June.

The number increased by 3,6% month-on-month to 4,89m units sold and NAR chief economist Lawrence Yun says the improvement occurred in all major regions of the country. He also says the trend is expected to continue and grow now due to tax credit incentives and historically high affordability conditions.

Also positive is the news that the construction of new homes and apartments in the US picked up to the fastest pace in seven months during June, rising 3,6% to around 582 000 units - and well above the historic low of 479 000 units recorded in April.

The US Commerce Department says this is an indication that the country's housing slump is levelling out, with builders and developers being more confident that they can sell any new units they deliver.
Indeed, the National Association of Home Builders says its builders' confidence index rose three points to 17 in June, well ahead of the 15 expected by economists, despite members' continuing concerns about credit problems, foreclosures and a weak job market.