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