Saturday, Nov 10, 2007
Citigroup call the top!
Times Online: Toxic mix to drive down house prices
House prices are at risk of falling next year as a "toxic mix" of rising interest rates, overvaluation and debt weighs on the market, investment bank Citigroup has warned.
Michael Saunders, the bank's chief European economist, is predicting a fall of 1pc-2pc with a "sizeable risk the outturn will be worse". He believes the decline will be led by a collapse in the buy-to-let market as rising mortgage rates and falling rental yields deter investors after a decade in which house prices have tripled.
Posted by jason @ 06:28 AM (466 views) Add Comment
3 Comments
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1. crash bandicoot said...
So the global credit squeeze and credit market uncertainties will push prices lower then. And all this in a tiny country with restricted building land, being overrun with imigrants and swampped with divorcees. It's a good job that the fundamentals remain firm or we would be right in the mire.
2. alan said...
After Citigroup's losses this week, I wouldn't trust them to change a fiver!
3. confused76 said...
check this link too
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/10/cnhouse110.xml