Wednesday, July 4, 2007
“Beginnings of slowdown in broader market”
Interesting "veiled bear" article: Hints that rising interest rates were beginning to dampen demand for both commercial and residential property came from Savills ... However, it said demand for “super prime” houses continued to rise strongly, with interest coming from international as well as UK purchasers. ... the super prime residential market ... continuing to benefit from City bonuses ... also “heavily influenced” by international buyers ... about half of purchases. ... people’s uncertainty about how far interest rates would rise deterred them from making purchases in case prices weakened ... confident that house prices would not crash. ... investors were becoming more selective, and yields on secondary properties were rising.