US housing prices have been hit by a two year low and have been sliding since last October, the US Housing and Urban Development Department (HUD) said on Tuesday.US housing market in January was up 15% compared to January 2018, and in February was up 7% compared with February 2017, according to data from the Department of Housing and Development (HUD).
The figures came as President Donald Trump vowed to do whatever it takes to help the struggling housing market.
“We have a housing bubble,” Mr Trump said on Twitter in February.
“The market is in a bubble.
I will do anything to get the housing market under control.”
The real estate market is the biggest drag on the US economy, contributing $4.9tn to the national economy in 2018.
It is expected to grow $1.4tn this year, according the US Department of Labor.
The fall in prices in February has been driven by a number of factors, including a sharp increase in homebuilding and a reduction in foreclosures.
But some experts believe the trend could be turning in the wrong direction.
“I think we’ve hit a plateau,” said Peter Cappelli, an economist at Bank of America Merrill Lynch.
“It’s hard to say exactly what is behind it, but I think it’s more of a plateau than anything else.”
The median price for a single-family home in January fell $3,700, according a report from the National Association of Realtors.
But the median price was down 1.5% from the same month in 2017.
The median price per square foot in January, up 3.5%, was down 4.2% from January 2017.
In 2018, the median household income in the US was $58,819.