New figures released have shown that house prices in America have experienced their first June rise since 2012, with the news that prices were up by 0.55% in US cities. This rise is the first since sales received a tax credit boost just over two years ago.
Speaking about the news, the chief executive officer and co-chief investment officer of Pacific Investment Management Co, Mohamed El-Erian, said: "Finally, the housing market is forming a bottom. That should be welcome. It is not surprising because affordability is so attractive right now."
The drop in the sale of distressed properties coupled with mortgage rates that are still at a record low have combined to help stabilize the market and should also help to contribute to a wider economic expansion across the country. Should easier lending conditions also be introduced to the equation then the recovery would receive an even greater boost.
Overseas, however, it is not such a positive picture, with Australia suffering a drop in the number of new homes being built during the month of July. Across Europe, Spain's recession deepened and the austerity measures dropped in by the government there have resulted in a slump in consumer spending.
About the recovery in America, however, former Fannie Mae economist Thomas Lawler said: "This ain't tax credit driven. There are fundamental reasons to expect home prices have bottomed and will continue to show gains." Susan Wachter, professor of real estate and finance, said: "This is real. The market has turned and barring any new shocks, this should continue."