In Australia, we’re seeing the economic upswing of what turned out to be a fairly mild financial crisis. And our property prices are reflecting this. However the situation in the US is somewhat more complex to predict. Some economists are saying that there are indications showing the worst is over and now the only way is up. A more common consensus seems to indicate that with unemployment increasing with no end in sight, the US is still in an economic tailspin. What’s more, several economists have predicted more waves of foreclosures on the horizon which will only add to the devaluations of US properties.

The negative press around US banks continues to focus on their continual explosive payments of employees ‘compensation’ and bonuses, and rightly so. As a result, the precarious reputations of these financial institutions don’t have room for more bad news – which is why they are choosing to ignore the huge problem of continuing growth of bad debt. Many owner/occupiers are still under enormous financial stress and foreclosure of their homes is imminent.

So it seems that depressed house prices are here to stay for a little longer yet. If you’d like to find out more about investing in positively geared US real estate click here.