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Real estate price collapse

February 4th, 2008

Dwellings all over the world will fall in price twice, predicts Dutch professor Pit Aihholts. He has analyzed the prices for houses in Amsterdam for the last 350 years and created a unique index.

Pit Aihholts: «The prices for real estate can do everything, but only within 5-10 years. In the long-term period they move horizontally».

Aihholts has found out, that before the oil crisis of 1979, price varied only in view of inflation. Then real estate has strongly risen in price according to Schiller’s index. And now, according to the calculations, the scientist predicts that the prices will return to the marks of 30-years prescription.

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