Introduction -- Key indicators of American housing sales -- Conclusion

Briefing note looks at key indicators of American housing sales in an attempt to look for evidence that the recent fall in prices is coming to an end. Indicators reviewed include affordability; mortgage interest rates and the labour market. Article concludes by saying that RICS believes that concurrent improvement in the MBA purchase index; the pending home sales index and in new home sales volumes must be seen over three to six months before we can say that a bottom has been reached. Regardless of this, the glut of unsold and vacant homes in the US market means that improvements to house prices are unlikely to occur quickly, even in the event of a halt to the current declining trend.