Falling prices spark US sales surge

Falling prices spark US sales surge

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The upturn in US property sales can be attributed to recent price falls in the country, new figures show.

The latest index from CoreLogic has revealed a 1.5% decrease in US property prices compared to last year, although many districts are experiencing much sharper drops.

CoreLogic surveyed 100 metropolitan districts and found that 78 had experienced a decline in real estate values.

Idaho was the hardest hit, with property prices slumping 14%, while there was a 10.4% fall in Alabama and 7.3% decrease for Utah.

"A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium," said Lawrence Yun, the National Association of Realtors chief economist.

"But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favourable affordability conditions."

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