Changes in Real Estate Prices

Paper Summary:

The paper is a research review on what impacts have been witness to housing prices in the European Union due to the entering of accession countries into the EU. The paper continues and states that housing prices have risen significantly, however, within one year of a country's accession into the EU, the housing prices generally stabilize. The paper confirms that at present the demand for housing in the EU accession countries exceeds the supply. Several graphs and diagrams are included with the paper.

Outline:
Objective
Introduction
Background of the Study
Research Questions
Methodology
Literature Review
Summary and Conclusion

From the Paper:

" A 2006 report entitled: "Real Estate Boom Shatters East European's Dreams" states that real estate prices have: "...risen as much as 100 percent in the eight former communist states that joined in the EU in 2004, driven by buyers from Western Europe. Many local residents with less than a quarter the buying power of their neighbors, have been locked out of the market, adding to frustration with EU membership and eroding support for budget cuts needed to adopt the euro." (Gomez, 2006) The price surge is stated to have "triggered investors concerns that the bubble will burst as interest rates rise, saddling banks with bad loans. The boom has been fueled by floating-rate mortgages as low as 4.4 percent, but now central banks are lifting rates across the region."

Sample of Sources Used:

• Gomez, James M. (2006) Real Estate Boom Shatters East Europeans' Dream. International Herald Tribune. Business. 11 August 2006. Online available at: http://www.iht.com/articles/2006/08/10/business/estate.php?page=1
• EU Accession Drives Bulgarian Real Estate Prices Up (2007) BuyInBulgaria.com website 3 June 2007. Online available at: http://www.buyinbulgaria.com/News/default.aspx?a=1&r=&nID=220
• Buiter, Willem H. and Grafe, Clemens (2001) Central Banking and the Choice of Currency Regime in Accession Countries.
• Ball, Michael (2006) Boom Remains in Most European Housing Markets. International Appraising.Online available at: http://find.galegroup.com/ips/retrieve.do?contentSet=IAC-Documents&qrySerId=Locale%28en%2C%2C%29%3AFQE%3D%28K0%2CNone%2C14%29EU+real+estate%24&inPS=true&tabID=T002&prodId=IPS&searchId=R1&retrieveFormat=PDF&currentPosition=9&userGroupName=avlr&resultListType=RESULT_LIST&sort=DateDescend&docId=A151275474&noOfPages=6
• Real Estate Prices Indexes (2006) Paris 6-7 November 2006. Paper 18 OECD-IMF Workshop. Organization for Economic Cooperation and Development and the International Monetary Fund. Online available at: http://www.oecd.org/dataoecd/42/60/37612322.pdf

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