NEWS THAT US home sales were up 2.4 per cent in May, month-on-month, may be as weak a theory to grasp as “when the US has a temperature, Europe catches a cold”.

If the reverse proves true, that an upswing in the US bodes well for Europe, then by a process of inexorable logic – as we grandly think – the effect may be felt here, come September.

Certainly, the emergency measures invoked by the Obama administration are already showing market recovery, according to ‘realtors’ as American estate agents are known. Measures such as “favourable affordability” (that’s 40 per cent discounts on 2007 prices) and “first-time encouragers” (big tax breaks) explain the increase in home sales.

It’s a buyers’ market, with in excess of 3.8 million homes for sale, most heavily discounted. Whatever our perennial problems, that amount of real estate waiting to be shifted puts the woes of our own “realtors” into perspective. Say it again – 3.8 million homes looking for buyers. Florida anyone?