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O E C D Report Holds Cheer For H P C Bears

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“While concerns have been expressed in several quarters about high house prices, the evidence examined here suggests that overvaluation may apply to a relatively small number of countries,” it said. Of the 15 countries with booming property markets, it found that only the UK, Ireland and Spain were significantly overvalued.

Since inflation was lower than in previous housing booms, “a bigger share of the burden of a downward adjustment of real house prices will need to be borne by nominal house price decreases, or else the adjustment will be more drawn out,” it said.

The OECD’s analysis showed that of the 37 housing upturns between 1970 and the mid-1990s, 24 ended in downturns, in which between one third and all the previous real-term gains were wiped out.

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This article brightened my day.. "AUSTRALIA has beaten the world in over-valuing its homes – and property owners should prepare for price falls until late next year... The OECD found the estimated over-valuation of Australian homes in 2004 was 51.8 per cent. The next highest over-valuation was in Britain at 32.8 per cent. "


Finally some sense.. Just quietly, i think the OECD report is BIG NEWS. Time to post it on all the BTL sites..

Edited by moit

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ft.com seems to have published 2 articles last night on the OECD report with differing slants.......

UK house prices are overvalued, warns OECD

By Scheherazade Daneshkhu and Jamie Chisholm

Published: November 29 2005 22:59 | Last updated: November 29 2005


House prices in the UK are "significantly overvalued" warned the

Organisation for Economic Co-operation and Development on Tuesday in a

new analysis of the world housing boom.

It warned of the danger of a protracted period of large house price

falls with implications for a slowdown in consumer spending.


Property overvalued in only a few countries

By Scheherazade Daneshkhu, Economics Correspondent

Published: November 29 2005 21:56 | Last updated: November 29 2005 21:56

House prices in the US have risen by more than 50 per cent in the past decade but in spite of fears of a crash, the property market is not overvalued, according to a new analysis of the world housing boom by the Organisation for Economic Co-operation and Development.

....I suppose they're trying to cater for different audiences in the UK and the US ?

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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