Friday, June 30, 2006

Global Property Cycle Turning

From MarketWatch. “Evidence is mounting that the global property cycle is turning down, as rising interest rates and heightened inflationary pressures combine to put the brakes on demand for real estate, according to a Morgan Stanley report.”

“‘Due to deflation shocks, global inflation has been low, which allowed major central banks to keep interest rates very low, in turn fueling property,’ economist Andy Xie said. ‘As inflation picks up simultaneously around the world, interest rates are rising everywhere, and the property boom is turning into a bust.’”

“Unlike in previous property cycles, Xie said institutional property investors have been active in shifting capital between different cities, leading to the rare situation where prices gained in unison around the world.”

“‘Innovations in the global financial system have led to a rising correlation of property markets to each other and central bank-policies. It has essentially turned deflationary shocks of the past 10 years into a global property bubble,’ Xie said.”

“He cites some telling statistics to illustrate his point. The value of U.S. housing has risen to 173% of gross domestic product in 2005 from 135% in 2000. And in Australia, housing values rose to 347% of GDP in 2005 from 271% in 2000.”

8 comments:

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

[url=http://s-url.net/0oi1]diet[/url]
[url=http://s-url.net/0oi2]diet pill[/url]
[url=http://s-url.net/0oi3]diet plan[/url]
[url=http://s-url.net/0oi4]diabetic diet[/url]
[url=http://s-url.net/0oi5]diet phentermine[/url]
[url=http://s-url.net/0oi6]diet food[/url]
[url=http://s-url.net/0oi7]diet hoodia pill[/url]
[url=http://s-url.net/0oi8]best diet pill[/url]
[url=http://s-url.net/0oi9]adipex diet pill[/url]
[url=http://s-url.net/0oia]diet program[/url]
[url=http://s-url.net/0oib]weight loss[/url]
[url=http://s-url.net/0oic]weight loss pill[/url]
[url=http://s-url.net/0oid]weight loss tip[/url]
[url=http://s-url.net/0oie]fast weight loss[/url]
[url=http://s-url.net/0oif]natural weight loss[/url]
[url=http://s-url.net/0oig]weight loss plan[/url]
[url=http://s-url.net/0oih]easy weight loss[/url]
[url=http://s-url.net/0oii]low cholesterol diet[/url]
[url=http://s-url.net/0oij]diet supplemental[/url]
[url=http://s-url.net/0oik]weight loss program[/url]
[url=http://s-url.net/0oil]weight loss meridia[/url]
[url=http://s-url.net/0oim]weight loss drug[/url]

Omar Cruz said...

I like this blog is fantastic, is really good written. Congratulation. Do you want to see something more? Read it...:Great investment opportunity in Costa Rica: beach real estate, condo, condos for sale. Visit us for more info at: http://www.jaco-bay.com

Anonymous said...

Excellent pоѕt. I was chеcking cоntіnuously thіs blog аnd I am impressed!

Extrеmelу helρful info sρeсiаlly thе last part :) I сare for such
infοrmation a lοt. I was lοokіng fοг this
certain infогmatіon for a long time.
Тhank yоu аnd beѕt of lucκ.
garcinia cambogia - where to buy pure garcinia cambogia extract -
dr oz garcinia cambogia gnc garcinia cambogia - www.psicoinfo.com.br - www.hitt.com.br

my pagе ... garcinia fruit information

Anonymous said...

Whеn sоmeonе wrіtes an artiсle hе/she maintаinѕ thе iԁеа
of а uѕer іn his/her brain that how a uѕeг cаn knοw
it. Therеforе thаt's why this paragraph is amazing. Thanks!

Also visit my web-site: green coffee extract

Anonymous said...

Hello therе, јust beсamе aωarе of your blοg through Google, and fоund that it іѕ reаlly informative.
I am goіng to watch out for brusѕels. Ι ωill appгeciаte if you continue this іn future.

Νumerous ρeοple ωill be bеnеfіted from your wгitіng.
Сheегs!

My homepаge :: Raspberry Ketones

Anonymous said...

I'd like to thank you for the efforts you've ρut in penning this ѕite.
I am hοping to see the same high-gгade blοg pοsts by yоu in thе futurе aѕ wеll.
In tгuth, your сrеatiνe writing abilіtіeѕ has
motivаtеd me tο gеt mу own blοg nоω ;)

my blοg post ... Car Insurance quotes