New figures that have been released have shown that house prices across America have risen for the fifth month in a row as the property market continues its revival after the sub-prime mortgage crisis caused the industry to suffer economic hardships.
The figures, which are compiled by analyzing data from 20 metropolitan areas, have shown that there has a been a rise of 0.9% when it comes to house prices, which is 0.4% about the estimate that many analysts had made.
Surprisingly, Australian homes also showed a rise after a series of months that had demonstrated a decline. The market in Australia enjoyed a 0.5% rise in eight major cities across the country in results that are encouraging economists the world over.
Property prices have started to rise slowly across America as demand increases following on the back of a slow-down of new homes being built throughout the housing crisis. As mortgage interest rates remain extremely low, those in a position to do so are attempting to take advantage of the house prices before they start to rise too high, which is increasing demand and driving the market.
It is expected that with the increase in demand and rising prices, the construction industry will start seeing more new homes being built as the knock on effect of a recovering housing market begins to impact positively in other areas of the economy, the ripple effect of which will spread further. More construction means more jobs, which means more disposable income, which means higher retail spending.