Housing prices will continue to rise over the coming years. The pace of these rises, however, will slow down considerably. High interest rates, tighter access to loans and a cooling labour market are the factors that will reduce demand. Supply, on the other hand, seems to have peaked and is likely to diminish over the next years – which should help stabilise real estate prices. A turn-around is expected in the market in 2009 when interest rates start to fall again and a new upward cycle begins in the economy.
To download this report visit Kaupthing Bank's website: http://www.kaupthing.com/lisalib/getfile.aspx?itemid=11919.
Author:
Asgeir Jonsson, head of the analysis department of Kaupthing Bank. asgeir.jonsson@kaupthing.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment