Czech Republic Property News Wrap-up :: Week of August 10 to 14, 2009

Czech Point 101 July 22, 2014 @ 2:48PM

1. Unemployment rises to 8.4% in July

High-level overview of article:
Czech unemployment rate grew to 8.4 percent in July from June’s 8 percent, while in July 2008, the jobless rate was 5.3 percent, the Labour and Social Affairs Ministry said.

Our take:
This looks to get a lot worse, considering also the news article below regarding the auto industry which is a huge part of Czech economy.

2. Insiders say the worst to come for carmakers

High-level overview of article:
Failure to pass scrap subsidy, European wide slump mean tough times ahead.

Our take:
Things seem fine now as the car scrapping program in Germany has plants running full production. Another article we read said that there is now a shortage of rental vehicle in many parts of Europe as leasing companies hold existing cars longer. This may end up reaching a tipping point and add to a later surge in car orders.

3. Home prices start to grow slightly

High-level overview of article:
The six-month fall in home prices is over. Data from some real estate agencies and property portals show that prices of flats and houses are slowly starting to grow again.

Our take:
Wow, we found this one a little hard to believe. We can believe things are fairly flat overall but best timing for getting a deal already passed? Not with lending still restricted. We think that many sellers will still be very motivated to offer incentives and be flexible even if not including big price reductions. Best time to buy is still slightly to the future but right now is also close to bottom.

Updated/Aktualizováno: ,

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