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Posted On: 19/07/2010
Italy has become the latest in a succession of countries to see the recovery in its housing market stall in recent months.
Bologna based research institute Nomisma has issued a report showing homes sales still down 30% compared to pre-bust levels and prices down 1.8% in the first half of this year compared to the second half of this year. The findings were from the firms survey of the 13 biggest cities in Italy, and led to Nomisma saying price rises were unlikely until at least the end of last year.
“Abroad, the market recovery has been felt for some months now, with investments resuming and prices picking up,” Nomisma said. “The Italian market still appears to be far from a firm recovery in terms of both prices and sales.”
Nomisma blamed a fall in consumer and business confidence on stalling the property market's recovery: both measures fell in June as households grew more pessimistic amid the highest jobless rate in almost six years.
This is entirely reasonable; Italian consumer and business confidence had a really strong run towards the end of last year, and during that time the housing market also regained some ground. The worrying thing is that it could turn into a self-perpetuating cycle; falling confidence reduces spending, damaging the economy and reducing confidence.
Of course this is all good news for anyone looking to buy a property in Italy, and for many of those who have already bought, because touristic zones like Calabria have not been as badly affected as elsewhere.
View property for sale in Italy
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