Test of strength the realty fall in prices

Q: Hi, can anybody tell me is there any chance for the housing market recover without price corrections?

Lokesh Patwa,

16th June 2014

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Hi,
As realty stocks grow and debt-laden firms ask for interest rate cuts to make glad the market, the remarkable counterpart is of setting-up inventories, declining incomes but rising house prices.

Lewin G,

16th June 2014

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Hi Lewin G,
One would expect prices to adjust in a inflection when demand falls and excess capacity stand up; demand-supply balance is revert in the process, causey the way for transactions to persue.

Dwarkesh,

16th June 2014

@Dwarkesh,
No, i don't think so, such procedure seems to be at work in the Indian property market though, where price corrections have essentially meant some deceleration, but not enough to sell off existing stock.

Lewin G,

16th June 2014

@lewin G,
If i am not wrong, the isolate between weak growth and house prices suggests that there is a need for further correction.

Dwarkesh,

16th June 2014