The housing market slump in the U.S. has spread to Europe, according to this morning’s Wall Street Journal. It’s the same story over there as here: higher interest rates, tighter lending standards and wavering confidence.
France in the third quarter had its first quarterly home-price decline in almost a decade, and the Celtic Tiger, Ireland, saw home prices in August nearly 2 percent lower than the same month the year before. In Spain, the average home price has fallen since July.
The housing market slowdown could impact these countries’ economies, much as it has in the United States.