The property market in the US has started to show signs that it is recovering, with the number of existing properties purchased in the country rising to its highest level in five months.

July saw a 3.1 per cent increase on the preceding month in the sales of single-family homes, condominiums, townhouses and co-ops, reports the National Association of Realtors (NAR).

An expert in the sector said that it was possible that the prices in some regions of the US could even be set to rise at some point in the near future.

Lawrence Yun, NAR chief economist, commented: "Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time."

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage in the US rose to 6.09 per cent in the second quarter of 2008, up from 5.88 per cent in the three months prior.

The Weis Group, a Wall Street Fund, and specialists in buying distressed real estate, raised further recently growing hopes that 2008 could be the year that American property prices bottom out and begin recovering. Last week The Weis Group told U.K. newspaper, The Times that it was in talks with some of America's big banks, about spending its 1billion dollar investment fund on purchasing hundreds of properties that had been reclaimed by the banks, with a view to selling in 3-5 years.

Many analysts have already put their money where their mouth is and stated that they believe 2008 will be the year of the U.S. recovery, a massive property investment specialist like Weis Group confirming their research will make their statements a virtual reality in the eyes of international property investors.

Liam Bailey, head of international research for David Stanley Redfern Ltd gave us his thoughts on American property.

"I have been saying for some time of the great irony: that the buying frenzy triggered by the U.S. subprime crash, as the combination weak dollar and falling property prices had people from the U.K. and around the world taking the opportunity to get their dream home/investment property in the states at a bargain price, might actually start a recovery in the American property market, and it seems I may not have been too far wrong."

David Stanley Redfern Ltd took on American property just last year, on that very belief, that the American property market had fallen almost as far as it was likely to, and the beginnings of a recovery were just around the corner. DSR's client's who have invested in the American property, could in 3-5 years, it seems, be very glad they did.

Managing Director of the overseas property specialist, David Redfern had this to say: "It is always nice when you make a move that some people may quietly think is risky, and some of your competitors may even have a sly snigger, and it proves to be massively successful move for both you and your clients. As our research department said a few months back, and has maintained fervently ever since, 2008 looks like being the year the U.S. recovery will begin, but there still looks like being a little time for investors to get in on the low priced action.

According to a report by the Weiss Research group demand for rental accommodation has reached an all time high in America. The report said: 'Now is possibly the best time to buy and profit from soaring rental demand and rapidly advancing rental yields. Never before in America's history has the real estate rental market appeared so strong. Vacancy levels are falling across the whole of America at record rates, and in parallel to this massive upside pressure that is being exerted on supply, the rate at which rental rates are rising is dramatic.' An average 5.3% rental rate increase is predicted across the whole market for 2008 according to the American Association of Realtors. David Stanley Redfern's head of international research Liam Bailey, gesticulated at potential causes for the massive surge in American rentals: "The increasing and massive volume of home foreclosures in America is forcing people into rental accommodation, the increased difficulty in obtaining mortgages is keeping would-be home-owners in rented accommodation for longer, and there are also growing numbers of people taking rental accommodation while they wait until prices have finished falling." According to analysts prices have fallen as far as they are going to and will bounce back by over 10% this year in Tampa, the site of David Stanley Redfern's newest American property: the Slade development, in the hip Channelside district. The Slade offers 1 bedroom apartments from just £144,000 and with a 6%p.a. rental guarantee for the first 2 years, 2 years which are also tax free, and maintenance costs are also covered by the developer for the first 2 years. The Slade also has excellent facilities including a 2 level fitness suite, infinity edge pool, salt-water pool, and roof-top sun deck.

CHICAGO (MarketWatch) -- Some second-home buyers coming to the United States to scoop up property in the shadow of Walt Disney World are finding that it is, indeed, a small world after all -- especially when it comes to getting a bargain.

The current weakness of the dollar has led some foreign buyers to projects like Lake Buena Vista Resort Village & Spa, a condo hotel development in Orlando, Fla.

Many buyers are attracted by the lights of Las Vegas, and about 10% of sales in the luxurious CityCenter development have been to foreign buyers, said Tony Dennis, executive vice president of the residential division for the development. Residential units will be marketed to more foreign buyers in coming months, he said. CityCenter is a multibuilding, multiuse development on the Las Vegas Strip that is being built by MGM Mirage.

And in Seattle, residents of Asian countries are seeking out second homes they can vacation in or investment properties they can rent out, said Bob Christian, chief operating officer of Century 21 North Homes Realty. He thinks that the strength of the Seattle economy is attracting foreign investors to the area.

"In the American market, the domestic market, there's a lack of consumer confidence. International buyers are coming in and saying 'If you don't buy, I will,'" he said.

A trip that pays for itself?
According to NAR research, Florida has the distinction of being the state most popular with foreign home buyers. Florida is followed by California, Texas, Arizona and New York.

While single-family homes and town homes are still the most popular investment for foreign buyers, condos are gaining steam: Between April 2006 and April 2007, 22% of homes purchased by foreign buyers were condos or apartments, according to NAR.

Cohen, from the Lake Buena Vista Resort Village & Spa, said the condo hotel model is attractive to these buyers because the room can be rented out to hotel guests when the owners aren't using it, and the property is low maintenance because there is a crew already in place.

These days, the weakness of the dollar is also giving some visitors a way to finance their trip, he said. He has noticed some of them buying American goods for friends and family, with plans to mark them up to charge for the service.