Further signs that parts of the US real estate market are improving have appeared on the horizon, experts have said.
Reynolds Group OC said “key market indicators” suggest San Clemente, Southern California, may have seen the worst of its housing slump.
The firm said new listings last month were 30 per cent lower than in August 2007, suggesting home sales are accelerating and properties are spending less time on the market.
Total inventory is down 18 per cent on a year ago, the company added, with reduced supply traditionally helping the real estate market to “heat up”.
The firm said:
“Many homeowners that have been sitting on the sidelines waiting for the market to pick up could find the most recent data refreshing.
“This reduction in supply, particularly in highly desirable areas like San Clemente, mean there is less on the market for buyers, and could mean that the home available today will be gone tomorrow.”
On Monday some commentators said the collapse of US investment bank Lehman Brothers could actually help the real estate market as assets of the firm will be slowly sold off.
However, John Oharenko, a member of the Real Estate Capital Institute’s advisory board, said the current US price correction will continue until equity investors “start capturing more sensible yields in line with the cost of debt”.
Related posts:
