Figures for the full year to December 2011 have revealed the value of residential property in the US fell by 4.7 per cent, compared to 2010.

However, CoreLogic noted in its December House Price Index that, excluding distressed sales, the cost of buying a home in the nation only fell by 0.9 per cent.

Mark Fleming, chief economist at the firm, commented: "While overall prices declined by almost five per cent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices."

There are some states where the value of residential real estate climbed last year, even when distressed assets were taken into account.

Montana experienced the biggest increase at 4.4 per cent, while Vermont, South Dakota, Nebraska and New York also saw property values climb by between 1.7 and four per cent.

Research published by the National Association of Realtors in January revealed pending home sales in the US fell by 3.5 per cent in December, compared to the previous month, but that they still remain 5.6 per cent higher than at the same time in 2010.
 

There has been a decline in the level of investment flowing into the Romanian commercial property sector in 2011.

Head of valuations and consulting at DTZ Echinox Bogdan Sergentu explained the amount of money invested in Romanian real estate dropped by 13 per cent in 2011, compared to the previous year.

Bucharest was the main target for those seeking such assets in the country, with developments in the city accounting for six out of the 13 transactions completed last year.

Mr Sergentu added 69 per cent of the total investment volume for 2011 was spent on mixed-use developments, despite a greater number of deals being agreed in the retail sector.

However, it appears the new year has started well for the nation’s commercial real estate sector, with Romania Business Insider reporting this week (February 2nd) that New Europe Property Investment - a South African-based fund - has purchased the City Business Center in Timisoara.

The complex comprises three office buildings, with two more premises still to be constructed.

Managing director for Jones Lang LaSalle in Romania Troy Javaher explained it is the "first major institutional office transaction outside Bucharest".