The us recovery is here, says report

Photo credit: Michael Patrick

The US recovery is here, according to Global Property Guide.

The site's latest report, which analyses property values around the world during the second quarter of 2012, paints a dark picture for many markets, with European property markets continuing to suffer as house prices fall. Even Asian markets are starting to feel the economic pinch, adds Global Property Guide.

But despite the negative global outlook, one country is showing strong signs of improvement: America. The report highlights the HFA's seasonally adjusted purchase-only house price index, which rose by 1.12% year-on-year in Q2 2012, in sharp contrast with the 8.76% decline year-on-year in Q2 2011.

Indeed, US house prices increased 0.96% quarter-on-quarter in Q2, the largest quarterly growth in house prices since Q4 2006, according to FHFA.

The S&P/Case-Shiller seasonally-adjusted home price index also fell by 0.74% during the year to Q2 2012, the lowest annual decline since Q3 2010 - and on a quarterly basis, the index rose by 1.41% in Q2 2012.

"Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter," said Andrew Leventis of FHFA. "The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase."

Canada's housing market has also been a strong performer year-on-year in 2012, with house prices in its eleven major cities rising by 4.06% during the year (the same period last year saw a 0.47% rise). House prices rose by 1.59% quarter-on-quarter in Q2 2012, a significant turnaround from quarterly declines of 0.52% in Q1 2012, and 0.2% Q4 2011.

House prices in Canada surged by 62% from Q1 2000 to Q1 2008, and rose by another 18% from Q2 2009 to Q2 2012, despite tighter mortgage and lending regulations imposed by the government.