Own A House - real estate market news

For the first half-year of 2008 the quantity of the houses, taken for debts, in cost $1 million only in area of Dallas (state of Texas) has increased more than twice in comparison with the last year.
It means that for the given period of time every 59 proprietor of habitation has lost the house. The quantity of taken houses, estimated in $500-999 thousand, has increased on 53 %.
The majority of taken houses exposed on the tenders are in a low or average price range. 83 % of all taken houses are estimated less than in $200 thousand.
Average cost of the house taken for debts, has made $140 thousand whereas 10 years ago it made $70 thousand.

In April prices for the real estate in Vilnius have decreased on 3,2 %, in Kaunas - on 2,9 %, in Klaipeda - on 1,4 %, in Shaulyai - on 2,2 %.
Thus in current and following year the prices for real estate in Lithuania can decrease on 20-30 %. Such forecast has been presented by senior analysts of Danske Bank in Baltic Region. They prove that now in Estonia and Latvia the prices for real estate have decreased on 10-15 %, and Lithuania “lags behind Estonia for two quarters”.
According to some politicians and analysts’ forecasts, financial crisis in Lithuania is expected in the second half of 2008. Some experts predict growth of inflation up to 17 %.
In the government of Lithuania similar messages are named as a part of pre-election campaign of opposition and declare decrease in inflation in second half of 2008.

The question about the future of European markets can be formulated as: whether they will follow America?
Before the crisis, according to the data of Deutsche Bank Research, European markets had developed synchronously with American one. Especially high correlation was in Britain, Holland, Denmark, Ireland, Spain, France and Sweden. At that, consider German analytics, prices for real estate in some countries of the Europe have obviously left the limits of common sense. «Investments into residential real estate differ from investments in shares and bonds by that it not only the object of gamble, but also consumer goods. Therefore, considering results of overpricing in this segment, experts can’t be limited only to simple calculations of cost and rent rates. They should take into account the factor of moderateness. And at a present price level residential real estate becomes inaccessible to consumers», - is marked in the report of Deutsche Bank Research.

The American crisis has already doubly struck the European real estate market: through the crisis of liquidity in the financial markets (in particular, in Europe mortgage credit rates have grown) and through expectations of recession in American and world economies.

It looks like Europe has already started to react to the American history. The prices for dwelling in second half of 2007 in Great Britain, Ireland, Spain and France have insignificantly eased. The French national federation of real estate agents has informed about falling of prices for residential real estate by 1 % in the third quarter of 2007 in comparison with the second quarter - for the first time since 1998. The Irish Research Institute of Economy and Sociology and mortgage bank Permanent have informed, that cost of apartment houses in Ireland has lowered by 1,9 % in August in comparison with similar month of the last year.