US property prices 'could fall further in the 2012'

Property investors looking to get a foot on the US market may want to wait until 2012 before making an international money transfer and snapping up an abode.

According to freelance property journalist and founder of PropertyJournalist.com Marc Da-Silva, the housing market in the States is "struggling" to recover.

He noted banks are believed to be "sitting on a lot of repossessed stock", which is expected to be released into the sector next year.

The expert claimed this will lead to the market becoming "flooded", as more and more homes are made available for purchase.

As a result, prices will effectively be driven down lower than they are at the current time so investors should be able to get more for their money.

Mr Da-Silva commented: "There is an argument to say that this time next year prices may be even cheaper."

He added those who have done their research and are knowledgeable of the market will know that "potentially the time isn't right to buy in America".

Although Mr Da-Silva acknowledged the housing sector is failing to recover at the speed anticipated by many people, he highlighted the "up-tick in demand" in Florida.

According to the expert, this state has seen property investment remain commonplace, as it is a popular holiday destination for tourists from outside and within the US.

However, Mr Da-Silva described how there is "still a huge glut of housing" and this will only be "exacerbated further" by the arrival of more foreclosed homes.

His comments follow a recent report from the National Association of Realtors that revealed the existing house sales in the US improved in October, while the number of properties on the market continued to decline.

Posted by Sarah Pitton

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