House Price's, Movers and Shakers

We had a young couple out last year who had sold their house in England and were ready to buy in Spain, however they had been told by their financial adviser that Spanish properties were overpriced, and if they waited they would see prices tumble.

Bad advice, this has not been the case, as you can see from this report published by Global Property Guide.

Research has shown Bulgaria as the country with the world's strongest house price growth last year.

The study carried out by Global Property Guide (GPG) said Bulgaria saw the world's strongest house price growth at 30.6% (15.4% in real terms) to end-Q3 2007 from a year earlier.

Shanghai came in second, despite efforts by the Beijing government to cool the market. House prices there rose by 27,85 percent in 2007.

The survey, which provides information for potential property investors, says that while the housing market gained momentum in the Asia-Pacific region, it slowed in Europe and "crashed" in the US.

Ireland's house price plunge continued, with a 4.68% y-o-y drop to October 2007. When adjusted for inflation, the drop is more pronounced at 9.1%. The Irish housing market is vulnerable to interest rate changes, as 85% of mortgages are variable rate, GPG comments.

Spain recorded 5.31% y-o-y house price growth to Q3 2007, the lowest rate of increase in nine years. Good news for all you potential buyers, and when you look at our website you will see many properties have also been reduced in price, vendors are trying to make their properties more attractive to potential buyers, so even more good news for you.

A slow down was also evident in the UK, though less sharp than expected. British house prices increased 9.7% y-o-y to Q3 2007, less than 2006's y-o-y increase of 10.5%. When adjusted for inflation, the house price increase in Q3 2007 was 7.5%, slightly higher than the 7.3% rise in 2006.

House prices in Italy and Greece have also cooled. Mortgages in these markets are predominantly based on variable interest rates.

Note

When seeking advice ensure it's from someone who expertise is relevant to the field your looking for. A financial adviser in England is not the person you should be asking about the housing market in Spain.

I believe the person in question saw a damming TV program about properties on the coast near Torrevieja, which is 175Km from this inland area and bears no resemblance at all.

The young couple in question have still not bought, and some of their dream properties have now been sold.

Seek advice, but from the right people, you wouldn't go to the optician to have a tooth extracted.