Wednesday, July 22, 2009
Buttonwood tells it like it is.
Already, in the British residential market at least, estate agents are talking as if the crisis is over. Many people seem to assume that once the recession has finished, property prices can resume their traditional upward course ...propertyâ€™s relative stability may be an illusion caused by an illiquid market; values have simply not been marked down as much as they should have been ...property prices since 2000 have been driven not by fundamentals but by the availability of credit ...in practice the result of inflation would probably be a one-off rise in rental yields caused by a sharp fall in property prices ...A strong economy is a far better backdrop for property than inflation ever could be. ** jcfoot has an interesting point, although I'm not sure it's a highly probably scenario **