As if more proof were needed that money is now an international affair, reports are now confirming declining home prices in many other parts of the world.
The International Monetary Fund estimates homes in Spain, where prices tripled in the past 10 years, are overvalued by 15 percent, The New York Times reported. In parts of India, houses have declined 20 percent in the past year.
In Ireland,a home bought for $575,000 by university administrator Emma Linnane in May of 2006 would sell for about $475,000 in the spring of 2008, the report said.
Meanwhile in Britain, approvals of mortgage applications have dropped by a staggering 31% as prices decline there too and the shock of a major Bank in trouble sinks in.
Some people are blaming the US(no surprise there), but we have to remember that the investors - the people who actually ultimately part with the cash - are international. Overvaluation will need to be corrected before the market can put itself right.
(Copyright © 2008 By Simon L Conway All Rights Reserved.)
Please give me a call if you have questions about the Central Florida real estate market. You can reach me on 407 876 8200. Also visit my web site at http://www.simonconway.net/ or http://www.move2orlando.net/
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