In addition, it is likely that lenders did not account for the risk of contagion in housing markets — that
weak house price growth would significantly increase the likelihood that borrowers would default.
Not exact matches
A report from CIBC World Markets recently predicted the stock market might fall 10 % — 15 % this summer due to a confluence of factors, including a
weak U.S.
housing market, increasing fiscal strain, expensive oil
prices, sluggish corporate earnings
growth and disruptions in global supply chains stemming from the Japanese crisis.
If anything should be clear from the bubbles of recent years, the greatest risks are not when
prices are depressed, the economy is
weak, and investors are frightened, but rather when
prices are elevated and an unendingly positive outlook for technology, or
housing, or global
growth, or private equity, or emerging markets, or commodities seems all but certain.
Dhar suggests that the recent moderation in
house price growth «has reignited risk that China's property sector may retrench again», suggesting that the outlook for residential construction, hence commodity demand, will remain
weak in the year ahead.
According to Knight Frank's latest Global
House Price Index, worldwide home
prices recorded their
weakest annual performance since the depths of the recession in 2009, recording only 0.9 %
growth in the year to March 2012.
But low interest rates and
weak prices have made homeownership more affordable than it's been in decades, the report noted, and several strong months of private - sector job
growth in early 2011 are «encouraging signs of a
housing market rebound.»