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.