# Will 2011 Be The Turning Point For The Global Property Market? The



## EthenGroom (Feb 1, 2011)

After almost 15 years of rising property prices in the vast majority of global property markets – and by as much as 300% in some markets - the last half of the decade was a rollercoaster ride for the global property industry. The sub-prime crisis emerged in the US in 2006, and rocked the global financial system. Shortly afterwards, the effect on the global property market became evident as property prices declined by an average of around 17% across the globe over the next two years. 

“Of course, there are wide differences in the performances of local property markets, some of which are still below their earlier peaks, most notably the US and some European countries. In addition, property prices have, in the last few months, showed signs of decline again. This can, to some extent, be ascribed to the fact that the stimulus provided by aggressive rate cutting has been absorbed by markets, and further rate cuts have not been possible, given the low interest rate levels. The ongoing difficulty of accessing finance also continues to constrain any substantial recovery,” he explains. 


The question, then, is will 2011 be the turning point for the global property market? “Given the realities of the last few years, it is unlikely that 2011 will be a ‘turning point’ in the sense that we will return to the pre-2006 scenario where the majority of global property markets produce strong house price growth. While it can be expected that, overall, the global housing market will deliver positive growth in 2011, double-digit growth rates are unlikely, except in a few exceptional cases. Instead, the slow but steady recovery evident since 2009 is likely to continue at a gradual pace and the bounce in property prices evident in 2009 and 2010, on the back of now-forgotten government interventions, will continue to slow,” he says.


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## Daxk (Jan 20, 2008)

The problem is overpurchase before the GFC.
In Ireland every mothers son and his best friend thought there was an inexhaustable supply of tenants and buyers.
I realised that there was going to be a correction in 2005, I did not expect it to be as severe tho.
70% of Irelands employment came from construction or service to construction.

SA has a similar problem.
SA lags about two to three years behind the Western World, they did not capitalise on the Resource boom, +70% of a middle class families income is going to service high interest debt,
80+% of homes purchased within 5 years are 1-3 months in arrears on their Bond repayment
(month 4 is when they start legal)
and right now, unless you have a totally clean record and have saved the difference between what you are paying on Rent mortgage and what the new Mortgage will be consistently over a year period, you aint going to get a bond.

whats your experience of mortgage availability? Ethengroom?


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