1. Czech households hold best financial position in region
(http://praguemonitor.com/2010/01/25/net-financial-position-czech-households-best-region)
High-level overview of article:
The Czech Republic ranks first in the region in terms of net financial position of households that improved last year making up over 42 percent of GDP, says a study of UniCredit Bank.
Our take:
This is a big reason in why housing prices did not take a huge dive. There were not distressed sales of property forcing prices down as Czech households have good balance sheets and can withstand some economic turbulence.
2. Confidence in Czech economy up 2.2 pts in Jan –CSU
(http://www.financninoviny.cz/english/zpravy/confidence-in-czech-economy-up-2-2-pts-in-jan-csu/425362)
High-level overview of article:
Confidence in domestic economy increased again month-on-month in January owing, however, only to an increase in confidence of entrepreneurs, and the composite confidence indicator grew by 2.2 points, the Czech Statistical Office (CSU) announced today.
Our take:
Substantial growth over January 2009!
3. Czech banks grant 33 pct less in mortgages in 2009
(http://www.financninoviny.cz/english/zpravy/czech-banks-grant-33-pct-less-in-mortgages-in-2009/425679)
High-level overview of article:
Czech banks granted loans for housing worth about Kc66bn to citizens in 2009, down by 33 percent from nearly Kc114m in 2008, the Local Development Ministry said today.
Our take:
Chart at the bottom of the article with years in terms of volume is very interesting. 2007 was a huge year and property prices jumped in sync.
4. Czech Finance Ministry Plans to Adopt EURO by 2016
(http://www.radio.cz/en/article/124377)
High-level overview of article:
The Czech Finance Ministry has outlined an ambitious plan to meet all the criteria for adopting the common European currency. If all goes well, the euro could replace the Czech crown by 2016. But adopting the euro is evidently no longer a priority for the Czech politicians who will replace the current caretaker cabinet after elections in May.
Our take:
The goalposts on this have moved so many times I don’t think anyone takes the talk seriously anymore. We really don’t feel it should be considered as a major factor in an investment decision.
5. Czech Central Bank May Delay Rate Rises, Tomsik Says
(http://www.businessweek.com/news/2010-01-26/czech-central-bank-may-delay-rate-rises-tomsik-says-update1-.html)
High-level overview of article:
The Czech central bank probably won’t raise interest rates until the third quarter as koruna gains keep a lid on inflation, taking pressure off policy makers to reverse monetary easing, board member Vladimir Tomsik said.
Our take:
Good news for investors but will probably keep CZK currency soft for the majority of the year.
6. Apartment prices fell slightly, however, rents become more expensive
(http://ekonomika.idnes.cz/ceny-bytu-mirne-klesly-najmy-vsak-zdrazuji-fkz-/ekonomika.asp?c=A100126_205935_ekonomika_abr)
High-level overview of article:
Property prices dropped year-over-year and quarter-over-quarter (-1.2%) but not substantially. Real estate agencies report that rents increased in all locations.
Our take:
A little bit more of a drop than we expected for Q4 of 1.2% after a rise in Q3. However, rent increases and demand we can also confirm.
Updated/Aktualizováno: July 22, 2014,
