The increase in house prices and interest rates are home buyers hanging on a tightrope, and sooner or later something will give.

Evidence anecdotally suggests that homebuyers in meters are beginning to postpone their purchase decisions at home. Finance companies are more comfortable making loans housing, as rapidly rising interest rates led to longer pay periods. Home loan business are becoming care lending beyond the retirement age of individuals, and began asking consumers to opt for increasing the amount of your payments or pre-payment and shorten the loan term.

All this suggests that we can expect housing prices to cool off in meters and mini-meters over the next 6 months, with residential prices in the short term to a correction of 20%, reflecting a slowdown in real estate purchases. So that the accessibility factor is making potential buyers to postpone purchasing decisions, investors should also be kept away because of the recent stock market correction. These Both factors would reduce demand and fair prices in the medium term.

Over the years past, home prices rose an average of 30-35% and 60-70% leaders in the Metro like Mumbai, Delhi, Bangalore, Chennai and Hyderabad in the seal, the cost to society, etc, etc. previous RS. 40-house will cost Rs 65 LAKH-LAKH now. Moreover, the price of housing in New Delhi seems to have climbed on a graph steeper than Mumbai.

The higher interest rates have increased EMI 25 to 30% in the past two years while fixed rate loans increased 8% to about 04.05 at 10.5% today. This means that emissions rose in RS 800 LAKH one 20-year loan around Rs 1000 per Lakh. In other words, a house that would cost Rs. Previous 35-LAKH rupees costs. 58-LAKH now, assuming which has 80% of funding, the EMI two years ago would have been Rs. 22,400. Today it stands at 46,400 rupees.

With the housing market mature for correction, it is recommended to delay the purchase of home buyers, while investors will care. Be patient it's worth your time, patience paid by the buyers, since the growth of housing prices slows in the world. A comprehensive report by Knight Frank, average growth in house prices should slow in coming 12 months. This will remain true for real estate India, as the prices of goods in May expected to show a weak trend in India.

The Indian housing bubble burst may be only the purchase of a house should be given to goods prices have stabilized and become more realistic!