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- Sep 25, 2007
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Hi all,
An article from the December 6th - 12th edition of The Economist (Finance and Economics). Excerpts:
According to our house-price indicators (see chart), America`s housing market is leading the way down for the 20 countries covered. But the situation is even worse than it appears.
In America, the collapse is striking both for its severity and its breadth: home prices fell in every city covered by Case-Shiller`s 20-city composite index in September.
For an indication of how far the downturn has spread, look at China. House prices are still slightly higher than they were a year ago, but in the third quarter they fell. In big cities, the picture is even worse. Shanghai`s house prices fell by 19.5% in the third quarter, says Savills, a global property company. Construction of homes, offices and factories fell by 16.6% in October, according to Macquarie Securities. The firm expects construction activity to slump 30% in 2009, after a 9% expansion in the first nine months of this year.
Barclays Capital says house prices may fall by about 15% over the next two years, hitting their long-term trend levels next year, then overshooting on the downside for another year.
http://www.economist.com/finance/displayst...ory_id=12725898
Keith
An article from the December 6th - 12th edition of The Economist (Finance and Economics). Excerpts:
According to our house-price indicators (see chart), America`s housing market is leading the way down for the 20 countries covered. But the situation is even worse than it appears.
In America, the collapse is striking both for its severity and its breadth: home prices fell in every city covered by Case-Shiller`s 20-city composite index in September.
For an indication of how far the downturn has spread, look at China. House prices are still slightly higher than they were a year ago, but in the third quarter they fell. In big cities, the picture is even worse. Shanghai`s house prices fell by 19.5% in the third quarter, says Savills, a global property company. Construction of homes, offices and factories fell by 16.6% in October, according to Macquarie Securities. The firm expects construction activity to slump 30% in 2009, after a 9% expansion in the first nine months of this year.
Barclays Capital says house prices may fall by about 15% over the next two years, hitting their long-term trend levels next year, then overshooting on the downside for another year.
http://www.economist.com/finance/displayst...ory_id=12725898
Keith