In Britain started this crisis in the residential property market. If even a month ago, the participants talked about the possibility of slowdown in house prices, but now they're the fact that the pace of cheaper housing not only slow, but on the contrary accelerate, and this acceleration will only grow over the next 2 years. Previously, there was a decline in prices during the year by 10% since April up to and including residential real estate Great Britain lost value of about 1% per month. Now think about this as a dream, after all, only for May prices fell by 2.5%. As a result, during the first 5 months of 2008 the total reduction of the cost of housing was about 5%. The fall in prices in one of the most expensive housing markets may well affect the dynamics of prices on the Russian housing market. In doing so already, in May Chinese real estate market participants have spoken about that in 2009 the market decline accelerates. The main problem of English housing market is the same as in the United States. There is no shortage of housing is not there. However, over the past 16 years, housing has become more expensive in England more than 3 times. Of course, this is nothing in comparison with Russian realities, where housing has become expensive by the same amount of just over 3 years. I attributed this boom was the availability of cheap borrowed money. The rates for mortgages were very low. In doing so, naturally, deposit rates were also low. They are always lower loan rates. As a result, compared with the return of deposits has proved more profitable to invest in housing, and donate it to hire. In doing so, it turned out that it is profitable, even if such investment to buy housing loans. And the population of active transactions in the style of "cash and carry", where anything purchased at the expense of borrowed money for later retrieval income. Through such an activity shelter population in England had become actively expensive. And flats were bought on credit, not only for putting into recruitment, but also for resale at inflated prices. However, since late 2006, was to unfold in the world financial crisis, and lending rates began to rise. In doing so, the majority of mortgage loans granted in Western Europe, as in the U.S., not at a fixed and floating rate on. Therefore, when banks began to raise lending rates, they began to grow and for people already accepted credit. But first, this is not a severe impact on their pockets, as well as improving went smoothly. However, once in August 2007, several international banks have recognized several tens of billions of dollars in loans issued in the U.S. population, irretrievably lost, mortgage rates began to rise in Western Europe very quickly. And the continued profitable home proved unprofitable for many. As a result, they have to sell the house, purchased on credit. In doing so, to sell a house in the absence of housing shortages becomes difficult. . However, winter is traditionally considered a time of active demand for removable housing. And in this regard has been slowly declining prices. Also, everyone knows that during the summer rental market is quiet. But no one expected that so strongly affect the dynamics of the fall in real estate prices. If even aim at the May pace of the English cheaper housing, it would mean that by the end of 2009 real estate in England may become cheaper half. In doing so right now the average cost of homes in Britain, representing 173.6 thousand pounds sterling or $ 344 thousand, and the average Moscow apartment costs about $ 450 thousand Thus, Moscow, at an average cost of housing has outstripped not only New York and London but - even more recently the most expensive city in the world.Read also:REAL ESTATE Moscow continues Expensive!
