Metropolitan real estate market is waiting for a collapse?

Nedvizhimost21-05-2007 Real estate prices in Moscow could collapse. This view is now shared by many experts. The fact is that for a year supply of housing has increased by 72%. And now placing funds in bank deposits, brings more profit than investing in real estate. In Japan, at one time drop in prices in this segment has caused the banking crisis, but to us it is probably not threatened. The Center for Strategic Studies Rosgosstraha still hoping for a revival in the Moscow real estate market, which, by their calculations, will begin in spring 2008. Now the average price of residential property fell by 3 percent. And when you consider that many sellers now greatly throw off flat prices in the bidding process, the drop in average prices for Moscow real estate for 3 months was about 8 percent. The discrepancy between the bid and ask price, providing the balancing of supply and demand of real estate in Moscow, was at the beginning of the year about 40 percent. "Therefore, the current fall in the value, certainly not enough to restore the balance of supply and demand in the Moscow housing market, - the head of the Center for Strategic Studies Alexei tine. - So today is significant room to reduce real estate prices in Moscow."