Although some experts say that investors should use the downtown in the market to pick up US property at bargain prices, others believe that those looking for short-term returns should hold off.

"Though some analysts believe that 2008 will be the year that the housing market starts to recover, I personally believe it is far too tumultuous to make an investment with short-term gains in mind," says Liam Bailey, Head of International Research at overseas investment property specialists David Stanley Redfern.

"On the other hand, because the dollar is so weak against the pound and because US property prices are considerably lower in the secondary market, demand is increasing massively for US property as people are getting more bang for their buck; more property for their pound. This upsurge in demand because prices are low, could ironically be a trigger for an upsurge in prices."

However, he continues: "I personally feel that many of the people buying in the US currently are taking the opportunity while prices are low and the dollar is weak to buy their holiday and retirement homes, as the US is a hot favourite for holidays. Any investors buying in the US solely as investment are looking at the possibility that the value of the property may not rise for quite some time, and may even fall in the short-term. These people are long-term investors. I personally would buy a property in the US now, to enjoy holidays in it, and hope to make a massive profit when we see the next US property boom, which could be in three years, but it could also not be until seven or ten years away."

Other experts feel that there is still the opportunity to make a profit from the US property market, but investors must consider location carefully. Geoff McClure, Managing Director of Azure Property International is one of these.

"While the US property market has gone through, and is still going through, a hard time because of sub prime, there are pockets of real estate across the US that are relatively immune," he says. "But the location of such pocket where properties are selling on a regular basis is key. There are deals to be had, especially if you are a foreign buyer and are using a long-term fixed rate currency exchange rate to purchase your property.  The weak dollar is helping foreign investment. Generally, properties are selling for less and cash buyers are achieving some great deals as sellers and developers reflect deals as prices are more realistic now. The dollar will not remain weak forever and investors will see immediate growth on their investment when the dollar strengthens.

"Over the next two to three years, returns will be possible. Its all about buying in the right place and negotiating the right price. However, returns will not be breathtaking probably around five to seven per cent over the period.  If the dollar strengthens then these returns could be greater."

If you are in it for the long haul, however, it could be wise to invest before the US property market hits an absolute low. Tim Creighton of Property Secrets explains: "The market may not have bottomed out just yet, but when it does the signs will be obvious to everybody," he says. "Better to get in just before the bottom and be ready for the rebound."

And almost everybody agrees that there will be a rebound: The US economy is expected to pick up over the next few years, bringing the US property market with it.

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Pictured: Sarasota, courtesy of the Sarasota Tourist Board

Article first published 6 May 2008