Wednesday, 12 December 2007

To Fall Or Not To Fall?

"Finnish insurer Tapiola said Wednesday that the growth in Finnish house and flat prices seemed to be grinding to a halt."

"Vesa Immonen, the head of Tapiola's real estate investment branch, said signs on the housing market indicated a cool-down, adding the time properties spend on the market had risen markedly."

"Tapiola sees the credit crisis that is weighing down the world's money markets keeping reference rates elevated for quite some time, narrowing households' possibilities to buy homes."

Against I would like to highlight that history has shown after peaking, prices never stabilize. We are now witnessing an inflection point which can bring prices either sharply up or down.

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