(b) Sharply reduced solvency of the greater part of the population, and a sharp rise in housing prices

In the first four months of 2014, housing sales dropped by nearly 7 year on year, with construction of new floor area falling by more than 22 . As a result, downward pressure on property prices is mounting.

Unemployment up. Housing values down. Equity markets down.

And that's basically deflation 50 percent deflation.

In recent years there has been a significant decrease in real estate and rental values and construction costs have stabilized.

In short, the downturn in house prices will not be limited to the US. And, on both sides of the Atlantic, that decline is likely to undermine consumer spending.

Economy downturn incomes fall some people can t repay mortgages banks sell defaulted houses at low prices house prices fall more people stop paying home mortgages banks sell houses again prices fall again ...

In short, the downturn in house prices will not be limited to the US. And, on both sides of the Atlantic, that decline is likely to undermine consumer spending.

They thought it would reduce their property values.

Such a large overshooting is likely to be followed by some undershooting. This would imply that prices will probably have to fall at least by 20 30 , but possibly considerably more before they find a bottom.

Lower house prices throughout Europe are thus likely to be accompanied by weaker consumption demand, as in the US. In Germany, for example, house prices have remained relatively low and consumption weak.

Because data for the euro area will become available only much later, it is not yet possible to determine whether prices have already turned on the Continent as well. But if the past pattern holds, house prices should start to fall very soon in (continental) Europe as well.

Because data for the euro area will become available only much later, it is not yet possible to determine whether prices have already turned on the Continent as well. But if the past pattern holds, house prices should start to fall very soon in (continental) Europe as well.

The proximate answer for the US is that a decline in lending standards helped people buy houses at ever increasing prices before 2006. Freer lending meant that people were freer to bid up prices of homes to ridiculous levels.

The most reliable index of comparable house prices has continued to decline month after month, and prices are now about 7 lower in real terms than a year ago, implying a 1 trillion loss of household wealth. With roughly 25 of all homeowners with mortgages owing more than their homes are worth, the decline in house prices reflects high rates of default and foreclosure.

Such a large overshooting is likely to be followed by some undershooting. This would imply that prices will probably have to fall at least by 20 30 , but possibly considerably more before they find a bottom.

Lower house prices throughout Europe are thus likely to be accompanied by weaker consumption demand, as in the US. In Germany, for example, house prices have remained relatively low and consumption weak.

After the peak, lenders tightened their standards. When buyers find it difficult to finance home purchases, sellers have to cut the asking price.

If that happens, a homeowner with a mortgage would see the real value of his debt rise by 10 . Since price declines would bring with them wage declines, the ratio of monthly mortgage payments to wage income would rise.

There has been an enormous decrease in (perceived) wealth, in the trillions, with the decline in house and stock prices. Besides, most Americans were living beyond their means, using their houses, with their bloated values, as collateral.

The prices of US homes are also declining at an accelerating rate, in many areas by more than 10 per year. The prices of traded mortgage backed securities have followed house prices down.

But it is only a matter of time until they fall, too. After all, the Standard ampamp Poor s US price earnings ratio is still above its long term average 26.84 in 2007, compared to its long term average since 1881 of 16.31.

But the fall in housing prices is unlikely to turn into a rout, because real demand for houses will remain strong after speculative demand is driven from the market. As soon as housing prices fall to an affordable level, buyers will enter the market and set a floor under the decline.

Such homeowners knew that with rising prices they would be able to realize a gain by either selling their homes or increasing their debt, while in the case of falling prices they could simply hand over the keys to their banks. Given the uncertainty about future house prices, they could reasonably expect gains, which induced them to pay even more in the first place.

There was a big decline in coffee prices.

Forty seven percent yes, as soon as they could price could come down.

In some cases, such a loss of credit worthiness was justified.

The prospect of falling prices reflects the collapse of industrial production, the resulting high level of unemployment, and the dramatic decline in commodity prices. Industrial production is falling at double digit rates in the negative inflation countries, and the price index for all commodities is down more than 30 over the past year.

According to the Standard amp Poor s Case Shiller US National Home Price Index, US home prices increased 86 in real, inflation corrected, terms from 1996 to 2006, but have since fallen 6.5 and the rate of decrease has been accelerating.

Of all these countries, the United States appears to be the most likely to have reached the end of the cycle. According to the Standard Poor s Case Shiller US National Home Price Index, US home prices increased 86 in real, inflation corrected, terms from 1996 to 2006, but have since fallen 6.5 and the rate of decrease has been accelerating.

In Spain and Ireland, construction investment has increased to a level (18 20 of GDP) far above that of the US and not seen in any other OECD country except Japan before its bubble burst in 1989. In these two countries, lower housing prices are likely to be associated with a sharp and prolonged drop in domestic demand, which should be stronger even than what can be expected in the US.

By contrast, in France and Italy, where house prices have increased almost as much as in the US, there is no evidence of a housing overhang. The negative impact of a downturn in housing prices in these two countries should thus be limited to a drop in consumption.

By contrast, in France and Italy, where house prices have increased almost as much as in the US, there is no evidence of a housing overhang. The negative impact of a downturn in housing prices in these two countries should thus be limited to a drop in consumption.

Since the twenty first century began, skyrocketing housing prices in China, except for a short respite during the global financial crisis, have caused serious social discontent. After years of half hearted effort, China s government has finally clamped down on housing speculation.

Decrease in price due to change in supplier.

The growing gap between mortgage debts and house prices will continue to increase the rate of defaults. Many homeowners who can afford to make their mortgage payments will choose to default, move to rental housing, and wait to purchase until house prices have declined further.

Decreased requirements under the category of rental of premises pertain to lower rental costs associated with the field offices and lower requirements under cleaning of premises.

The price of cabbage fell because of overproduction.

The price of shrimps fell by 36 per cent in the period from 1989 to 1994.

The first stage in a technology's advance is that it'll fall below a critical price.

Recently, everyone has been talking about the recent changes in real estate policies. Is it true that real estate policies have been loosened? Is the diversification of land supply going to bring down the housing prices?

The Price of Land and Houses falls

There has been an overall decrease in the level of housing construction, but the ratio of private sector housing construction compared to public sector has been increasing.

In terms of price performance, that's a 40 to 50 percent deflation rate.

Data from the National Bureau of Statistics revealed that in October, prices of new and second hand residential properties cooled, up 0.6 and 1.1 month on month, respectively.