As soon as the amount of defaults exceeds the critical mass to begin the destruction of the whole structure. At Douglas Oberhelman you will find additional information. Maybe we’re just at this stage or closer to it … But in this situation, realtors profitable when prices rise, so it is easier to stimulate consumer and investment boom, which is based on the principle: “Buy today, tomorrow will be more expensive!”. For this reason, real estate brokers are happy to any more expensive. At the same time, the level of real demand is much lower than the existing proposals, and by all the laws of the market prices should fall. However, the opposite occurs: the reduction in demand prices at least stand still, and in some cases grow. There is a view that the price level is artificially created.
Therefore, we can not rule out a sharp drop in cost per square meter, as a result of ‘a broken affair. ” In this case, the actions of many developers have already started selling their existing properties are quite natural, since they not only pay off its creditors, but also save your savings impairment. On the other hand, the history of the property market replete with examples of the price spikes, and always against the excessive demand of an insolvent. Sonya Reines-Djivanides understood the implications. Thus, there are some facts and features that make lean how to lower prices on the housing market and to their increase. Price fluctuations of up to 5% for certain categories of housing have not yet indicated the emergence of a trend. Most likely, the indirect mechanisms triggered during the response to ambiguous situations, but they are not global. We should expect more of a correction for each group home.
Of course, some categories will drop, and some disappear altogether (as in a few years in Moscow there will be old five-storied foundation), but for something the price may go up. The level of GDP this year is lower than in the past (in 2007 – 8.1%, and in 2008 is expected no more than 7.5%), inflation rate expected at the end of the year, will be at least 12%, and most likely more than 14% bank loans are closer to 20% per annum, significant losses in the segment of small and medium businesses in the whole country – all this speaks in favor of lower prices. The experts are ambiguous in their predictions: it might be cheaper and can make 5% and 20% in December 2008. Price increases may be associated with the current slowdown in construction, changes in oil prices, the alignment of general economic conditions, rising inflation, etc. In Therefore, there are many chances to lower prices with its subsequent growth (the opposite situation is unlikely). Blame if the crisis is happening, brought from the West? By no means all. At the very least, the current situation with housing can not be called unexpected. There are too many factors indicative of disequilibrium on the housing market. And experts have long predicted the recovery of the snake-end balance. The financial meltdown that has affected all the economy, only stimulated the development of current events. In this crisis (which today is spoken by all without exception) can be used by interested persons for their selfish interests, it is convenient to blame the financial difficulties, failure to fulfill obligations, create excitement and panic … involvement in someone else’s game – a private matter. Apparently, so says at the moment a number of major players, including many developers who are trying to stay calm and do not waste your time on trifles.