Is Europe's House Party Ending, Too?

[questionmark]

Is Europe's House Party Ending, Too?

By Mark Scott

After nearly a decade of exuberant growth, residential real estate prices in Europe are clearly starting to cool. But it's still much healthier than America's.

Experts predict that home sales prices in Europe will be hit this year, but not as hard as in the United States.

The numbers speak for themselves. Home prices in the euro zone are forecast to rise only 4.9% this year-down from 7.6% in 2006, and the smallest increase since 1998, according to a recent report by Barclays Capital. In some parts of Eastern Europe, prices could decline by as much as 10%. "The markets have slowed down significantly," says Michael Ball, professor of urban and property economics at the University of Reading.

Certainly, Europe's housing market still looks healthier than America's. In the U.S., home prices suffered a 3.2% year-on-year price drop during the second quarter, according to the Standard & Poor's/Case-Shiller Home Price Indices. And unlike their counterparts across the Atlantic, few European lenders engaged in risky subprime mortgage practices.

Full Story, Source: Der Spiegel

[Lord Umbarger]

These things are cyclical. It might sound backwards but, now is the time to invest. You can make a futune when things turn back around. Buy cheap, sell high, that's how they get rich. THe down side is that you have to have money to make money!

[questionmark]

These things are cyclical. It might sound backwards but, now is the time to invest. You can make a futune when things turn back around. Buy cheap, sell high, that's how they get rich. THe down side is that you have to have money to make money!

To buy you wait until "EVERYBODY" is selling.... we are not there yet.

[Lord Umbarger]

It's difficult to time the exact best moment to buy but, yeah, you're right. You want to buy when it hits the lowest price possible.

[questionmark]

In a related story:

China, EU reassure on subprime fallout

Mon Sep 3, 2007 11:16AM EDT

By Mike Peacock

LONDON (Reuters) - China said on Monday none of its massive foreign exchange stockpile was invested in the teetering U.S. subprime mortgage sector, while a top EU official predicted the crisis could crimp but not choke off economic recovery.

European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said tighter credit conditions were possible and that growth in the euro zone may suffer a little as a result.

"I think downside risks have risen for next year ... and, probably, all this turbulence will cut European growth by a few (tenths of) points," Almunia said.

A senior Chinese foreign exchange agency official helped sentiment by saying none of Beijing's $1.33 trillion stash of foreign exchange reserves -- the world's largest -- was in U.S. subprime mortgage-backed securities, underscoring China's earlier assertions that it had only limited exposure.

Full Story, Source: Reuters

[Atheist God]

Is Europe's House Party Ending, Too?

By Mark Scott

After nearly a decade of exuberant growth, residential real estate prices in Europe are clearly starting to cool. But it's still much healthier than America's.

Experts predict that home sales prices in Europe will be hit this year, but not as hard as in the United States.

The numbers speak for themselves. Home prices in the euro zone are forecast to rise only 4.9% this year-down from 7.6% in 2006, and the smallest increase since 1998, according to a recent report by Barclays Capital. In some parts of Eastern Europe, prices could decline by as much as 10%. "The markets have slowed down significantly," says Michael Ball, professor of urban and property economics at the University of Reading.

Certainly, Europe's housing market still looks healthier than America's. In the U.S., home prices suffered a 3.2% year-on-year price drop during the second quarter, according to the Standard & Poor's/Case-Shiller Home Price Indices. And unlike their counterparts across the Atlantic, few European lenders engaged in risky subprime mortgage practices.

Full Story, Source: Der Spiegel

The reason the US had major problems with real estate is due to several reason one is price gouging and the other is because of this loan thing in which banks gave loans and sub-prime mortgages to people who could not afford them due to massive debt causing a major fluctuation in the NYSE.

[Rocket88]

I cant see how our kids will ever afford to buy their own homes.

Even if house prices come down by a few % , they"ve already gone through the roof, & out of reach of a lot of people.

I understand the "boom & bust" principal, but when "bust" comes, the cost will still be extortionate.

Its ok for some of us now, but future generations dont stand a chance.

The other side of the coin:

Roll on the "bust" phase. We"ll buy a couple of houses, do em up, & make a killing!

Edit: Or rent em out to our kids!

Edited September 3, 2007 by Rocket88