It's TIME to BUY a home! Housing prices are FALLING around the world!!! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
The global boom in real estate markets, long seducing investors, came to an end. According to Global Property Guide, the cost of housing in different countries of the world after the U.S. and Britain reduced. The recession will last more than a year, and the recovery of the U.S. housing market, which entered last year in the strongest period since the Second world war, the depression drags on. Record levels of evictions, limited lending, and reducing...The global boom in real estate markets, long seducing investors, came to an end. According to Global Property Guide, the cost of housing in different countries of the world after the U.S. and Britain reduced. The recession will last more than a year, and the recovery of the U.S. housing market, which entered last year in the strongest period since the Second world war, the depression drags on. Record levels of evictions, limited lending, and the decline in consumer spending in the United States triggered a global correction in housing prices. Experts note that the square meters cheaper everywhere except a dozen countries, including Russia, which still manages to maintain growth.In Global Property Guide noted that the indicators of housing prices, according to data for the annual period ended in the first quarter showed growth only in 13 countries. Among the leaders of China, where the Shanghai area rose by 40.5%. Among the other countries growth are Bulgaria (31,6%), Hong Kong (31.1 per cent) and Singapore (29,8%). Rose also houses in Cyprus, grew up in the price of real estate in Australia, and Taiwan. However, if we evaluate the dynamics of inflation, the highest increase was by no means in China or Singapore, and Slovakia, where housing prices rose by 29.3%.All other markets fell, the champion was a Latvia вЂ” Riga apartment price lost the 38.2%. Wave overseas mortgage problems has come to the European markets six months later, how was any negative phenomena that originated in the United States and landed to the Old world. According to Global Property Guide, now a record decline in real estate prices is also observed in Ireland (-13,2%), Luxembourg (-5,8%), Portugal (-4,3%) and Malta (-4,9%). In the UK, where investment in the residential sector has always been considered a profitable investment, a recession began recently, so while British prices fell only 0.7% (or 2.1% for inflation). Among Asian markets, the slowdown observed in Japan, where residential property for the year taking into account inflation fell to 1.9%.In Russia, housing prices still rising, says the head of the analytical center IRN.ru Oleg Repchenko. "In Moscow housing from the beginning of 2008 went up by 20-25%," he says. However, Mr. Repchenko said that during the whole of 2007 the housing market in Moscow had been stagnant and prices have started to rise only from the fourth quarter. "In terms of lack of supply prices in Russia are rising in opposition to the markets of Europe and other countries," вЂ” said the expert. Meanwhile, he expects that in Russia in 2008 will also be the correction of housing prices: the end of the year he expects the market stagnation and even reduction of prices by 5-15% at a revalued types of housing.Experts call the three main reasons that turned global house prices reversed. First, because of the long boom has changed the ratio of housing prices and higher rental cost, and many people became more profitable to rent an apartment instead of buying. Secondly, inflationary pressures forced the Central banks to increase interest rates, which immediately reflected on sensitive to changes in the credit policy of the housing market. Third, prices were also influenced by the same unwritten policy of the American administration, which did not restrict excessive lending to risky borrowers, which ultimately led to the financial crisis вЂ” the worst in postwar American history. Housing prices will go up again after that, as with the decline in housing will manage the U.S. economy. Experts interviewed by RBC daily, note, that this will be possible only after its own regeneration.It is expected that the coming winter, the experts don't even start talking about a deep recession in the U.S. economy, and about her depression. "This period will last until AprilвЂ”March 2009, and the situation will be more severe than usually predicted, вЂ” told RBC daily, the Director of the research center CEMI-EHESS Jacques Sapir. By the end of 2009 the us economy will begin a slow recovery, and this process will gather momentum until 2010". According to the Director of the joint research centre of the housing market, Harvard University Nicholas Retsinas, "historically, housing markets are restored only after the economy has entered a period of recession".Given the vast number of evictions in the U.S. because of the inability to pay the banks, and the tension in the credit market, the downturn in the us real estate sector will last longer than it seemed in the beginning of the crisis. "The market was very overheated, and a highly varied geographic type of demand, so the current state and future recovery will depend on each individual region, told RBC daily: head of economic and strategic research at Jones Lang LaSalle Vladimir Pantyushin. вЂ” The main pressure now comes from the failure of people from of payments". From yesterday's annual report from Harvard University about the state of America's housing market, it follows that the number of evictions for the period 2005-2007 has doubled from 660 thousand to 1.3 million cases.