Risk of local property correction high
April 04, 2008 02:15am
Article from: AAP
THE risk of a correction in Australian house prices is high by
international standards, the International Monetary Fund (IMF) says.
The IMF, which says Australian property is among the most overvalued in
the developed world, has warned that about 25 per cent of the increase
in house prices between 1997 and 2007 cannot be explained by fundamental
economic factors such as population growth and income, The Australian
Financial Review re****ts.
The fund ranks Australian residential property fourth among developed
nations, behind Ireland, the Netherlands and Britain in terms of
vulnerability to a drop in value.
The warning comes as pressure mounts on the federal Government to spark
competition in the home-loan market and assist non-bank lenders affected
by the global credit crunch to secure funding.
Concerns about the financial pressures on households and a deterioration
in competition in the mortgage market are likely to be raised when the
Reserve Bank of Australia Governor Glenn Stevens appears before a
parliamentary committee in Sydney today.
--
Warmest Regards
Bonzo
". researchers at the Max Planck Institute for Solar Research in Germany
re****t the sun has been burning more brightly over the last 60 years,
accounting for the 1 degree Celsius increase in Earth's temperature over
the last 100 years."
http://ibdeditorial.com/IBDArticles.aspx?id=287279412587175
