Real estate sales in the US climbed dramatically during July giving the sector a much-needed boost, it has been revealed.
The news comes after it was reported that sales in the country during June stood at a nine-year low.
However, the National Association of Realtors (NAR) reports that pending home sales rose 5.2 per cent during July compared to the previous month.
Lawrence Yun, NAR chief economist, warned that the foundations for a firm recovery do not yet exist.
"The recovery looks to be a long process. Homebuyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers," he added.
"For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity."
Meanwhile, others believe the outlook is still gloomy.
Yelena Shulyatyeva, an economist at BNP Paribas in New York, explained that the future of the US property market remained uncertain as a result of a mounting inventory of foreclosed and vacant homes. 