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Here’s what we’re serving today:
- 🏘️ What's going on in the Real Estate Market?
- 🌱 COP28: What to watch out for
- 🔍 3 Law Firms lead on Boots deal
🗞️ Must-Know Today
- Truce: Qatar’s foreign ministry said that a temporary truce between Israel and Hamas, originally scheduled to end today, has been extended by two days.
- Black Friday deals: Black Friday shoppers spent a record $9.8 billion online in the US offering a positive sign for retailers facing lower sales forecasts for the holiday season.
- China's Industrial Growth: China's industrial profits rose by 2.7% in October, indicating a slow yet ongoing recovery, despite a 7.8% decline in profits compared to the same period last year.
- UAE's COP28 Controversy: The UAE, set to host the COP28 climate summit, reportedly prepared to negotiate oil and gas deals, sparking criticism, although a COP spokesperson dismissed the leaked notes as inaccurate and unused.
- Dutch Government Formation Hurdles: Geert Wilders' efforts to form a Dutch government are hindered by the resignation of a key senator due to a fraud scandal, complicating coalition formation despite his party's election victory.
🏘️ Real Estate
What's going on in the Real Estate Market?
The once booming global housing market is now facing a stark new reality, with soaring mortgage rates and a persistent home shortage leading to increased financial strain for many.
Roundup: How are different markets doing?
- United Kingdom: The UK housing market is experiencing increased financial strain. High interest rates and the cost-of-living crisis are pushing many to consider downsizing or facing late mortgage payments. Landlords are also under pressure, affecting renters as well.
- United States: The housing market is almost at a standstill. Many homeowners are holding onto their low-interest rate mortgages, making them reluctant to sell. This has resulted in a significant drop in home sales, with affordability reaching its lowest point in decades.
- Global Perspective: Overall, higher mortgage rates and home shortages are creating a less affordable and more strained housing market globally.
Why is this happening?
- Interest Rate Hikes: Central banks around the world have increased interest rates to combat inflation, leading to higher mortgage costs. This makes borrowing more expensive, deterring potential buyers and straining existing homeowners with higher loan payments.
- Pandemic Aftereffects and Supply Issues: The COVID-19 pandemic led to a surge in housing demand while simultaneously causing supply chain disruptions. This resulted in a shortage of homes and higher prices, a situation exacerbated by the economic stimulus measures during the pandemic.
- Global Economic Instability: Ongoing geopolitical tensions, trade disruptions, and uncertainties in key economies are contributing to global economic instability. This affects investor confidence and real estate market dynamics, reducing the appeal of property investment and influencing housing prices and demand.