Prediction: housing prices in the Eurozone will drop 8% by 2012

October 5, 2010 at 12:20 pm

..or so a report from the European Central Bank says. The housing crisis also threatens to consume the whole euro area. The European Central Bank (ECB) provides that real house prices in the eurozone will fall by 8% by end of 2012, according to a study published on the bank’s website. This report does not include a specific breakdown of the different countries.

The model of calculation predicts that “the real house prices in the euro area should come down to the end of 2012, with a turning point during 2011.“ Price are expected to fall, after 2 periods of important growth. Between 1997 and 2007, the European home values rose 45%. Previously, between 1986 and 1991, housing prices were 25% more expensive and then there was a contraction period of six years until 1997 with a fall of 8%.

News source: elmundo.es

Photo: wagner.nyu.edu

Entry filed under: Economy, Housing, News, Real estate. Tags: drop, eurozone, housing, percent, prediction, prices.