Own A House - real estate market news

2007 was marked by:

1. The largest landslide of prices in the American market for the last decade;

2. Terrible mortgage crisis when more than one million Americans were put in jeopardy;

3. Global crisis of liquidity, in other words, trust of financiers to each other, which was the consequence of first two factors;

4. Sharp change of Federal Reserve System’s policy: from inflation containing and increase of rates - to numerous reductions of key rates with the purpose to rev up the economy, balancing on the verge of recession;

5. Active intervention of the Central Banks and the governments of the USA and the Great Britain in internal affairs of the financial markets - at the instance of figurants or without it (the Bank of England has offered the rescue program of one of the largest mortgage banks of the country, Northern Rock, Bush’s administration - the rescue program of many mortgage borrowers);

6. Mass bankruptcies of the largest mortgage companies, first of all in the USA;

7. Record losses of banks all over the world - only in Europe the question is about tens of billions;

8. Disappointment of investors in the world’s most expensive real estate – British market;

9. The transformation of pluses in minuses - falling in price of that, which was just increased in prices;

10. Reorientation of real estate’s buyers to “exotic”: Panama, Azores, Arabian countries, and also to northern markets which are at present obviously undervalued (Finland, Estonia).