The report explains house price growth based on several short-run factors, such as growth in incomes, asset prices, and population, and long-run factors, such as the ratio of house prices to incomes. The difference between actual house prices and those predicted on the basis of these fundamental factors gives another indication of whether prices may have more room to fall.
Further afield, house prices in the previously booming Chinese market had dropped appreciably by about 4 per cent, while the US saw prices continue to fall by 2 per cent year-on-year.
Many Irish people have sought work in recent years on the booming construction sites of Australia and Canada. However, the IMF report shows that house prices in Australia fell by 6 per cent in the past year, while Canadian prices dropped about 2 per cent–developments that may have an impact on Irish people living and working abroad. A recent article in The Australian, however, quoted Investec Asset Management strategist Michael Power as saying that Australian housing prices could plunge by up to 20 per cent by the end of 2014.
The Epoch Times publishes in 35 countries and in 19 languages. Subscribe to our e-newsletter.
Friends Read Free