According to some economists' words, Russia is the typical victim of "Washington Consensus". The so-called "Washington Consensus", is the economic development model based on privatization of state-owned enterprises, trade liberalization, macroeconomic stabilization, strict fiscal and monetary discipline. It was also known as "shock therapy." In January 1992, Russia started with a comprehensive price liberalization to do the implementation of the "Washington consensus." This liberalization movement brought numerous injuries to Russia including the real estate bubble. Especially in the 21st century, Russia was rapidly raising the house price. From 2000 to 2005, housing price rose 253%. 2006 house prices rose 53.8% in Russia, while Moscow's price rose 93.8%. Russica's room rate stays on the top and makes common Russician hard to bear. There is statistics stating that tough living condition, insobriety and drug taking become the three major reasons causing Russician's marriage's fracture. At the beginning of 2007, a social investigation's result of Russica's public opinion research center shows that 60% Russician need houses urgently. According to the Health and Social Development of Russian Ministry in July 13, 2007, the current average monthly wage of Russian people is 500 dollars, compared to only 394.7 U.S. dollars in 2006. On this basis, a person won't make enough money to buy a house even if he abstained from eating and drinking!Well!! Most Adaptive parker pens Are Available

The Real Estate Law worsened the supply-demand conflict in short time: The housing price of Russia increased to a large extent, which should be attributed to [shock therapy". Blanchette’s Reason for ed hardy At the beginning, Russia`s reform was a little hurried. Some Details to Protect Your parker fountain pens By 21st century, the laws & regulations system in real estate filed had still not established, thus the development of real estate enterprises and real estate market was disordered. In order to change this scene, Russica parliament passes real estate law in 2005. The law regulates that all real estate projects must be sold in the market after they get the sals permission from April 1st in that year. And developers can't identify sales contract with consumers until they gain land and building permission and owe permitted house's development scheme. In addition, developers must assume the risk during the housing building period. Such law also stimulated the developers` authentication qualification, namely, if developers delayed the house-delivery time and singly modify or breach the contract, they will be severely punished. Once the built houses are not consistent with that in the contract, consumers have the right of quitting the house and ask for claim.

"Property Law" itself is very positive, but after it launched, increasing the real estate in the short term supply and demand. The survey shows: Before the promulgation of the law in Russia 20% of commercial housing was first built and there is no license, is often sold in advance and approval of procedures carried out simultaneously. After the new law appears, the action of preselling houses alone without state's permission becomes illegal action. Therefore, new law's implementation causes many commercial residential building projects being built to put entering the market off. Meanwhile real estate projects in the planned construction are laid up for the moment. There is statistics showing: Comparing Russica's real estate with the new law before its coming on, new houses' supply drops nearly by 30%. House's problem is intensified due to the market's lacking regulation and supervision: Under the serious condition of house's supply and requirement, because the market lacks regulation and supervision, there are three factors and house's problem is further intensified: (1) Relaxing exchange control leads hot money's flow, speculation to fry apartment and raising the price. Since 2005, there was a jumpstart growth on the Russian foreign capital inflow speed and scale. The inflow of capital per quarter in 2004 was about 70 million, while quarterly capital inflow in 2005 amounted to 18 billion U.S. dollars. In the Russian housing market, at least 30% of housing transactions aimed at capital investment which resulting in rapidly rising house prices.

(2) The developers controlled and raised prices. In Russia, if followed with normal procedures, the developers had to spend at least 3 and a half years to complete the formalities from the beginning to get the construction permit approval; next, one or two years to connect electricity, water, gas and heat; most developers relied on bank loans, if the delay in completion of real estate, high interest and other costs were passed on buyers; together with building materials price and inflation price increases, buyers had to pay them together. (3) Unfair land distribution. Before October 1 of 2005, the open land for housing in Moscow had never bid which resulting in a local monopoly, so many building lots was got by some companies which were close with the power sectors. Federal Anti-Monopoly Secretary Artemyev acknowledged that there were lots of serious violations in the housing land allocation in Russia, illegal collusion occurred sometimes. For the healthy development of the housing market and made "Home Ownership", the Putin administration began to abandon the "Washington Consensus" in favor of the use of administrative measures to control prices. Putin and Medvedev thought that at least 40% of people can afford the house;

In order to effectively control room rate's rising, relevant department should try to increase housing's supply and adopt methods to strictly attack housing' construction and sales' field's corruption and to bid up room rate. If housing market can realize supply and demand's balance, room rate may go back to rather reasonable level. The weakening of beating housing market by administrative means: Under the guidance of such idea, Russia adopted administrative means to directly intervene housing market over past years. 1) Russia strongly constructed economic & practical houses, in order to increase the supply of housing market. In 2006, Russia enacted [Economic & Practical Housing" National Special Planning. At present, 1.2 million households have the priority to purchased economic & practical houses, and these people mainly cover serviceman, the immigrants of countries in independent union, immigrants in extreme northern area (70,000 households), and the evacuated residents due to the construction of Chernobyl Nuclear Power Plant and [Lighthouse" enterprise accident. The main regulation tool was housing purchase permit.

Yakovlev (Russian Regional Development Ministry) pointed out that Russia will give priority to resolve the housing problem of the young couples aged below 30, and Russia will comprehensively promote housing purchase mortgage loan (especially the down payment problem). Now, 10% down payment's mortgage lending is budgeted by the nation. 30% of it should be solved by the council and regional budget. The loan's limited period is 20 to 27 years. Other part is secured by homebuyer. At present, housing's average sale price in the area is about 14 thousand roubles (1 dollar is about equal to 28 roubles). Family whose wage per month surpasses 15 thousand may apply for housing loans. And capital and interest's loan per month needed to repay is about 3000 roubles.