| Prior to 2000, the real estate market and
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| | the U.S. real estate market, our analysis
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| the economy were always cyclical. For
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| | will focus on U.S. real estate, which is
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| instance, the US housing prices tended to
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| | currently quite representative of markets
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| weaken as the GDP and employment
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| | around the world.U.S. Real EstateIn 2005,
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| prospects declined, particularly during
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| | America's real estate boom was strong,
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| the recessions of 1980 and 1990. The
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| | with prices up by 13%. But there were
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| economic downturn of 2000-01 defied many
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| | signs that the market was weakening.
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| predictions by having the opposite impact
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| | Sales of existing homes fell this January
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| on real estate prices. Over the past
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| | to the lowest in nearly two years.
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| five years, real estate prices have
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| | Meanwhile, the number of unsold homes
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| increased approximately 10%,
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| | rose to the highest level since 1998. In
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| outperforming equities by a wide
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| | addition, new homes continue to be built
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| margin.Historically, real estate has been
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| | at the fastest pace since 1973. In other
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| viewed by many as a good hedge against
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| | words, while the supply of housing is at
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| inflation. During the last five years
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| | the highest level, demand for homes has
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| however, real estate prices have exceeded
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| | fallen dramatically, rendering a downward
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| the rate of inflation by a gross
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| | price adjustment inevitable.
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| margin.Given the significance and size of
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|