The signals in the ECB monthly bulletin that, in the first half of 2007, there were price increases of 6.6% compared with a increase of 6.7% in 2006 (+9.7% in 2005). Overall, says Frankfurt, in the first half of 2007, residential property prices across the euro area rose by 5% compared with an increase of 6.1% in the second half of 2006.
In general, it is stated in the bulletin of the ECB, available estimates "suggest that housing prices, after the acceleration observed between the mid-nineties and 2005, continued their return on a more moderate growth path. " National data indicate that "the moderation of the dynamics of house prices has been most marked in countries that in recent years have experienced relatively high increases in residential property." These include Belgium, Ireland, Spain, France and Malta.
In contrast, data for Italy, the Netherlands and Austria suggest "that the increases in house prices in 2007 remained in line with those recorded in 2006." In general, the ECB continues, recent trends in residential property prices "reflected mainly a decline in housing demand." It also adds the ECB, the available data for the supply and demand indicate that "in the second half of 2007 may have been a further moderation in residential property prices."
Source: Il Sole 24 Ore Radiocor
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