US HOUSE PRICES DOWN

A survey by the National Association of Realtors (NAR) has shown that prices of existing homes in the US have fallen over last year for the first time since April 1995. The price of the average existing property fell by 1.7 per cent in 2006 to approximately $225,000 (£120,000),  according to the NAR, while the number of sales was also down over that year.

NAR chief economist, said that the figures held mixed messages for analysts but that overall it was clear that the market slowed down rather than "crashing" as some predicted, we saw a level off and anticipate growth again by year end through into 2008.

“It keeps us on track to see the third-highest sales year on record, with adjustment in home prices over the last several months we can now work through the build-up in the inventory of homes on the market,”