Cold winds in housing markets: forecasting the winter

0 Comments | AFP, December, 2007

PARIS (AFP) — Cold, and in some cases bitter, winds are blowing through the housing markets of many industrialised countries bringing unpleasant questions: will there be a property crash and will the repercussions hit growth and consumption, cut incomes and cost jobs?

In trying to assess the length and depth of the mortgage winter which has spread from the United States, the Organisation for Economic Cooperation and Development concludes that the risks of a deep freeze throughout the OECD area are slight.

"For most OECD countries, housing investment will provide less support to GDP (gross domestic product) growth than in previous years, but it is likely to represent a major subtraction only in a couple of countries," the OECD said in its overview of its 30 member...