Sunday, Mar 30, 2008
Very bearish stuff
Observer: House prices likely to fall by 25% in two years
House prices in Britain could crash by 25 per cent before mid-2010, forecasters at Capital Economics have warned. That would wipe £45,000 off the value of an average house.
Other UK housing bears include David Miles, chief UK economist at Morgan Stanley. He reckons the market is due a 20 per cent correction.
If he and Capital are broadly correct, a significant number of people who bought two years ago will find themselves in negative equity by 2010.
Posted by little professor @ 12:47 AM (297 views) Add Comment
1 Comment
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1. Fed Up said...
Only 25%? Mr Stanford isn't taking into account the snowball effect. Even if it is only 25% by mid-2010, that will still not be the market bottom. Further falls will happen through to 2012 and beyond. It is 1988 onwards all over again. Remember, prices didn't bottom out in mid-1990.