MADRID | By Bankinter analysts | According to Rightmove, housing prices in the UK rose by +0.1% m/m in June versus previous +3.6%. Thus, the year-on-year rate slows down to 7.7% from 8.9%. In such context, Bank of England’s minutes will be particularly relevant this week, especially after Mr Carney said that the rise in interest rates will come sooner than markets expect.
MADRID | The Corner | It’s not only about China or the US. Housing prices are well above their historical averages in many countries such as Poland, Turkey or Brazil. And that could mean big trouble for those economies, some of which need to assess their lack of capacity, like the UK. This time the EU’s peripherals are following the opposite trend, with home prices falling 7% in Greece, 6.6% in Italy and 5% in Spain in 2013. The graph shows home prices’ y-o-y evolution in 4Q13.
CAPITAL MADRID, José Sánchez Mendoza.– Pay more, almost double, but with a comfortable loan that covers all or most of the amount. It’s a win-win situation, don’t you think? Though it may seem, this is not the lamp seller in a Moroccan bazaar’s talking but the candy that banks put in front of consumers to get rid of the housing stock that hampers their balance sheets. According to a study…
NEW YORK | American homebuilders feel they are sort of turning the corner. On Tuesday the home price sector reported its most-improved selling season in a long time: according to the widely watched S&P/Case-Shiller index, home prices rose in March from February in most major U.S. cities for the first time in seven months. Lower borrowing costs and an improving job market also gave business a boost. Economists believe that…
MADRID | In an interview with the Spanish business daily El Economista, head of the Absolute Return department at Edmond de Rothschild Benjamin Melman said the Spanish government’s austerity plan is credible, but the markets doubt that it will help the economy grow. Unlike most market participants, Melman explained why he is more worried about France than about Spain or Italy. After the sovereign risk rally that we saw last week, would…