From Auction Alliances May 2011 Newsletter:
As yet, there has been little recovery within the housing market in 2011, with a decline in house price growth in real terms.
According to First National Bank, if one adjusts the average house price index with the Consumer Price Index, the April real house price growth rate remained negative to the tune of -2.4%, (CPI 4.2%).
Looking forward, if the residential market cannot achieve substantial house price growth after such a huge interest rate stimulus, a period of house price decline would be the likely outcome of a possible phase of interest rate hiking, or of slowing economic growth, or both.
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