Skip to comments.IMF sounds global housing alarm
Posted on 06/12/2014 3:27:14 PM PDT by Lorianne
The world must act to contain the risk of another devastating housing crash, the International Monetary Fund warned on Wednesday, as it published new data showing house prices are well above their historical average in many countries.
The warning from the IMF shows how an acceleration in global house prices from already high levels has emerged as one of the major threats to economic stability, with countries making limited progress in keeping them under control.
Read MoreMany seek new homes near cities but are priced out
Min Zhu, the IMF's deputy managing director, said the tools for containing housing booms were "still being developed" but that "this should not be an excuse for inaction".
House prices "remain well above the historical averages for a majority of countries" in relation to incomes and rents, Mr Zhu said in a speech to the Bundesbank last week, which was only released on Wednesday because it clashed with a European Central Bank announcement.
"This is true for instance for Australia, Belgium, Canada, Norway and Sweden," he said.
In the wake of the global recession central bankers have cut interest rates to record lows, pushing house prices to a level that the IMF regards as a significant risk to economies as diverse as Hong Kong and Israel.
(Excerpt) Read more at cnbc.com ...
Im sounding the Jihad in Iraq alarm, the southern border disintegration alarm, and the Muslim commie presidential usurper alarm
Frankly IMF, I don’t give a damn.
Now please tell us when this crash will occur.
Without stipulating time of crash, the forecast is as useless as tits on a bull.
Does this mean that after two decades of passing on inflated housing prices I will actually be able to buy a home at a reasonable market price?
Just wait. The reasonable market price on an average home will be nothing more than a big enough gun to defend it.
Let me guess... the IMF’s ‘solution’ is to steal (make offers to our “public servants”) in exchange for more money from American citizens. Then they’ll distribute OUR MONEY around the world to UN ‘friends’... kickbacks anyone?
The IMF is as believable as the global warmists... only not as ethical.
Yes, but no one can or will tell you when the next housing crash will occur. The last crash in 2006-07 came with no warning.
I can understand that statement, as I too sometimes completely miss important news.
However, you’re incorrect:
I had more to write but deleted it. I don’t have the energy for an argument with hypocritical real estate people tonight...
When I said no warning, I was referring to the general public, 95% of whom does not read financial news. I lived in a sub-division of 300 single family homes of 2000-2800 SF and a significant portion went into foreclosure. Obviously they did not expect a severe downturn in prices.
Yeah, over half of which were content to be taking magical equity gains from their homes and assuming the “magic” would continue forever. Many people on the right also displayed this ignorance.
Real estate became a ponzi scheme once everyone accepted multi-tiered profit on a static investment. Nothing has changed and the status quo is still “return of housing prices” and taking equity gains.
The prices are likely to continue to rise with the general inflation.