Inflation for the week slips to 5.24% its lowest level since Feb 2008, for the week ended Jan 3rd on the back of sharp fall iin the prices of food articels and crude prices.
Major Leading news paper are writing that the Real Estate prices have fallen down to the 2004-2005 levels. Real estate companies are blaming the the Banks for the cause. According to me the actual prices have not yet fallen down. The only thing is stopped is that, the investors have stopped investing in this sector. Banks have cut down the intrest rate also, but that too very small % and only for the new takers. The borrowers who have taken loan way back are still paying heavy bank intrest. Crude prices have also fallen down on slidding down, even the production cut by the OPEC have not helped the prices to stabalise. The developers are raising unlimited money to pay back to the loan they have taken from the bank. Some of the leading developers to boost the sales and increase the demand, have started making low cost affordabel houses. They are unable to sell the property, according to me the, prices will slide down further.
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