Own A House - real estate market news

In the USA, when in 2000-2001 the Internet-bubble has burst, speculative capitals have poured from stock exchanges to the real estate market. For the five years prices have doubled. And for 25 years real estate in the USA has risen in price more than three times: if at the beginning of 80s average household cost approximately 60 thousand dollars, in 2005 the figure was already 200 thousand.

In a counterbalance to Europe and America, cost of houses and apartments in Japan for more than ten years only fell: real estate market could not recover from grandiose crisis at the beginning of 90s, and stabilized only in the last couple years.

It looks like the ten years’ trend «for increase» is finished. In the USA from the beginning of 2007 the prices gradually come down. Half-yearly coming down with significant sales slowdown has developed in August into severe mortgage crisis, which has spread worldwide as the crisis of liquidity.
Significant reduction in price for real estate has experienced Tampa and Miami (10-11 % for a year), San Diego, Las Vegas and Detroit (8-10 %). The price index for houses of Standard&Poor’s/Case-Shiller has fallen insignificantly for a year - all by 6,7 % (information for the third quarter of 2007). However the majority of analysts are sure, that the crisis only begins. The number of suits for bankruptcy of house owners increases: in 2007 more than 2 million families have lost their real estate, as they could not pay mortgage credits. The current year won’t differ from the previous one.