USA property prices set to improve in 2010

USA property prices are close to bottoming out following a tough few years for the residential sector, according to the latest report compiled by First American CoreLogic.

Although the USA property research firm expects values to dip further over the next couple of months, due to a rise in foreclosure properties coming onto the market, the company does project that USA home values will hit the bottom of the cyclical downturn by March 2010.

Not only are USA home values expected to stabilise, but unemployment levels are expected to fall, which should also help the market improve. First American CoreLogic predicts that the average price of a residential property in USA may actually appreciate by around 1% year-on-year by October of next year.

The greatest improvements in the USA real estate market over the next six months are expected to be witnessed in the state of California; San Francisco, Los Angeles, San Diego, and Sacramento.

Mark Fleming, chief economist at First American CoreLogic, said: “We are continuing to see improvements in the year-over-year [USA] home price change as prices have remained relatively stable since April [2009].”

He added: “The additional government support for the housing market has stimulated demand and restricted supply in 2009.”