Own A House - real estate market news

In America the prices for real estate have reached record-breaking low mark for the last 16 years and continue go down in price. Experts predict long and deep market recession of houses for one family.

According to CNNMoney.com, the price index for houses “S&P/Case-Shiller”, basing on the complex analysis of real estate prices in 10 cities, has fallen by 6,7 % in comparison with the last year. Falling of the same index in 20 cities has made 6,1 %. The reason of recession is an abundance of empty houses in that market, which has used to experience the agiotage of consumers.

The greatest recession is fixed in Miami (12,4 %), Tampa (11,8 %) and Detroit (11,2 %). Real estate has risen in price only in three cities: in Northern – Caroline’s Charlotte (4,3 %), Oregon’s Portland (1,1 %) and in Seattle (3,3 %).

In spite of the fact that in December after three recessions successively the prices for the real estate in Britain have grown by 1,3 %, it is still early to tell about the end of crisis.

The Independent informs that today’s real estate crisis, which is the largest since 1995, can not be considered completed - even despite of the encouraging statistics of the last year’s end. 

The total amount of bank loans for real estate purchase in November has made 80 thousands - 3,1 % less, than in October.

In December 2007 the average price of a private apartment house has made $393,4 thousands and was 5,2% higher, than in 2006. All experts agree in opinion that restriction of the bank credit by Bank of England had not time to tell upon the state of mortgage lending market, so they expect the further downtrend.

The highest skyscraper of the world - Burj Dubai

The most expensive apartment
The one-room apartment in Moscow about 12,9 square meters has been sold at the price of 7200 dollars for sq. meter.

The most expensive office
More than 500 million dollars has paid limited company “Prana” for the YUKOS’ headquarters in Moscow constructed in 2001 for 40 million dollars.

The most expensive land
In Sochi hectare’s hundred part has been sold for 1 million dollars.

The most expensive estate
English estate Updown Court, located in the neighborhood with Windsor Castle. It consists of 103 rooms and 5 pools, its cost - 139 million dollars.

The smallest house
It is offered for sale in Toronto. The area of the house constructed in 1912 - 28 square meters. The price - 228 thousand dollars.

The most expensive house
It is being constructed by American billionaire Tim Blikset - the owner of resort Yellowstone Club in Montana. The billionaire is going to sell it for 155 million dollars.

American magazine The Forbes has made the list of US’ cities, with the most favorable lease conditions for owners. The first place has taken New York. Here the average rent is the highest throughout the country and makes 2922 dollars per month.
 
The second place has taken San Francisco, where tenants should pay on the average 1904 dollars monthly. The third line of a rating has taken Boston with an average rent payment in 1658 dollars per month.

Among other ten cities are San Jose, Los Angeles, San Diego, Washington, Miami and Philadelphia also have In Chicago a landlord will get hardly more than a thousand dollars per month.

The most favorable for lodgers is Kansas City. The monthly rent in this city averages 655 dollars.

While in all the Britain prices for the real estate fall the second month running, in some cities of the country the rise in prices for the real estate has been accelerated even twice.

According to company Nationwide, in November prices for the real estate have fallen by 0,8 %. Annual rate increase has fallen to 4,8 %, in comparison with 11,1 % in June and 10,5 % in December 2006.

Average cost of a house in the Great Britain makes 182080 pounds sterling (363,4 thousand dollars).

Nationwide predicts absence of price escalation for the next year in general.

Nevertheless, despite of the general price recession throughout the country, in some UK’s cities the rise in prices was expressed in double-valued figures.

The greatest rise in prices has been marked in Belfast: 32 % in comparison with the previous year. Now the average house in Belfast costs 306698 pounds ($610 thousand). Then goes Aberdeen (25 % of growth), London (16 %) and Saint Albans (13 %) which till now remains the most expensive city of the Great Britain. Average cost of an apartment house in this city makes 347563 pounds (693,8 thousand dollars), writes The Guardian.

Real estate market in Montenegro favorably differs with its strategic direction to tourism (as a matter of fact is a main income source for Montenegro).

The main market of real estate in Montenegro includes apartments, country houses, houses, hotels, restaurants, bars, i.e. the commercial and residential real estate intended for tourists and rest. The prices for such real estate, certainly, depend on a site and closeness to the sea. Having summarized - 1400 euros for sq. meter in a country house, house, and an apartment from 500m from the sea and farther. More than 2000 euros for sq. meter cost the real estate at the coast.

The Western Europe has always considered Montenegro as a place created for rest. Montenegro and the seaside in particular, has turned to an enormous building site for construction of elite real estate (country houses, houses, hotels) and apartments. Restaurants and bars are under construction everywhere and are offered for sale.

Real estate in Montenegro stably rises in price, taking the lead over statistics of other European countries; it is also find a ready rent market.

The legislation of Montenegro allows foreigners without difficulty to buy and sell both commercial and residential real estate. Procedure of registration is easy and takes a few days.

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).

Rich foreigners have already for a long time bought the second dwellings in megapolis like New York and Miami, and not only for business purposes and entertainments, but also as profitable investments. But recently this tendency has even been intensified.

According to the National Realtors’ Association, the last year each fifth realtor company has pushed the business through the foreign investor. Fast decline in dollar’s value to euro and English pound this year has strongly reduced the price of the American houses for Europeans, and landslide of prices because of mortgage crisis has made them more attractive for other foreigners.

Realtors also mark, that high-interest of foreigners to investments in the American real estate has led to increase in demand for houses in before unpopular areas.

The report «Beige Book» which is published on a regular basis and describes economic climate of the USA as a whole and separate regions in particular, has disappointed investors with its vagueness and first of because of absence of FRS’ promise to lower both long and short interest rate.

US real estate market should be mentioned here separately, as the climate of this market has recently riveted stockbrokers’ attention. Real estate market, yet even before the burst crisis at stock exchanges, as of July showed the lowest sales for the last six years. Experts of this sector of the market, as a wonder-working remedy see the further decrease of the loan rates. Otherwise they predict, the US economy will fall in long and gloomy recession.

However FRS does not reduce the rate not in vain, as all would be too simple, if the simple lowering of interest rate was a universal remedy.

Moods of investors were expressed in a rush jettison of shares for the benefit of reliable bonds purchase. In general, the market is subject to mass moods and very sensitively reacts to news and rumors, sometimes not adjusting influence scope of the received data.