The Knight Frank Global House Price Index for Q3 2009 showed increasing prices in 68% of the countries reporting price changes for Q3 2009. House prices, however, are still lower than 12 months ago in 57% of the locations.
Israel remains the top performer over a 12-month period with prices increasing 13.7% to the end of Q3 2009. On a quarterly basis, Singapore saw the biggest rise with prices up 15.2% during the third quarter of the year and Dubai recorded the largest annual drop (-47%), but posted moderate positive growth in Q3.
See http://www.knightfrank.co.uk/news/Knight-Frank-Global-House-Price-Index-082.aspx for more detailed information
Invesco Perpetual’s Neil Woodford has warned that there is a very real chance that gilts could lose their AAA-rating as a result of the mounting fiscal deficit in the UK.
Citywire told how Woodford stated “There is a relatively high probability at least of it…There is a decent chance that we will be downgraded. It is a near certainty if we don’t at the next election properly deal with the deficit. If we don’t take the medicine we will be downgraded. If we do then we might avoid a downgrade.”
He also reiterated his view that despite mounting good economic news the recovery will be a slow and painful one, characterised by a series of economic disappointments. Indeed the economic news of the past quarter has not persuaded him that a V-shaped recovery is under way. He still believes there is a possibility of a couple of quarters of negative growth as banks, consumers and governments are forced to de-leverage much further.
See www.citywire.co.uk for the full story
The Halifax House price index for Dec 2009 increased by 1.0 per cent in December, the sixth consecutive month of rises. The monthly increase was slightly below the average for the preceding five months (1.2 per cent).
Martin Ellis, housing economist, said:”The prospects for the housing market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale. Overall, our current view is that house prices will be flat during 2010.”
see http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp for more information