It Could Be Different This Time

UK house price growth ‘slowing’
Most previous housing booms have been followed by bust. Some people, however, think it could be different this time and take comfort from the experience of a number of other countries, such as Australia, Spain and Ireland. However, for some of these markets, it may be too soon to say whether they have escaped unscathed or had a temporary reprieve.

Australia?

Australian housing finance plunges
Global credit market turmoil and higher interest rates are expected to dent housing finance commitments in coming months, after worse than expected figures on new home loans were released today.

Housing affordability slows construction
The housing affordability crisis continues to wreak havoc upon the Australian construction industry, contributing to a further deterioration in activity last month, new figures show.

Spain?

Spanish building slump sparks economic jitters
But the bubble appears to have been punctured, with house prices dropping 2.1% in both Madrid and Barcelona so far this year, according to Preciometro.

Sun is setting on Spanish property boom
Hundreds of estate agencies across southern Spain have gone out of business in a trend that experts say signals the end of a buoyant housing market that has fuelled the country's economy over the past decade.

Ireland?

Ireland's market loses some steam
The survey suggests average prices fell a modest 2.6 percent during the six months to June. But some agents predict prices will be 10 to 15 percent lower by the end of 2007 than they were in December 2006.

To infinity and beyond!

Global Growth Threatened as U.S. Contagion Spreads
Even before the latest rise in borrowing costs, some of Europe's strongest housing markets were showing signs of weakness. Spanish home starts plunged 21 percent in May, virtually wiping out growth for the year, while Irish house prices suffered their first annual decline in at least a decade in July.

Asia is ``still heavily dependent on exports,'' Stephen Roach, chairman of Morgan Stanley in Asia, said in an interview on Sept. 6. ``And the largest market for most Asian economies remains the overly extended American consumer, who I think is the next shoe to drop in the subprime shake-out scenario.''

Faced with inflation at a 10-year high, China has raised interest rates and acted to curb bank lending to cool its overheated economy. Sun Mingchun, an economist for Lehman Brothers Holdings in Hong Kong, said in an Aug. 31 note that those concerns ``could be turned on their head if the global economy turns down sharply.''