Tuesday, 4 December 2007

Finnish Mortgage Society: Sharp Slowdown


"The Finnish Mortgage Society said Tuesday that the country's housing market had slowed down surprisingly quickly in the October-to-November period."

"It added that a slowdown would persist at least until the spring owing to a longer than expected impact of the US mortgage crisis."

Is it really surprising? interest rates and housing prices have gone up in a straight line. Affordability has sharply decreased and construction cost soars to an unsustainable level. No one should be surprised of a sudden reversal of housing prices in the next year or two.

If history serves as a guide, a correction (that has not yet started) is never as short as they seem to imply.

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