A once-in-a-generation opportunity to pick up prime US real estate

The worst is over in the American property crash, says James Ferguson. Smart investors will get in now. Here's how to profit from the US real estate recovery.

The slow-motion crash taking place in the UK housing market has been frustrating for bulls and bears alike. Official price falls have been in the 10% range, but with interest rates at record low levels, the market has been left in a zombified state, unable to find a clearing' price. Sellers aren't desperate enough to sell at the prices buyers are willing or able to offer.

If you want to see a real crash, you have to look across the Atlantic, to the US. According to the US Federal Reserve, the value of American households' real-estate assets peaked in 2006 at just over $25trn. Since then $7trn equivalent to nearly 50% of the US's annual GDP has been wiped off the value of the US housing stock.

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James Ferguson qualified with an MA (Hons) in economics from Edinburgh University in 1985. For the last 21 years he has had a high-powered career in institutional stock broking, specialising in equities, working for Nomura, Robert Fleming, SBC Warburg, Dresdner Kleinwort Wasserstein and Mitsubishi Securities.