Friday, May 16, 2008
UK house prices to follow US lead?
Moneyweek: Don’t buy into this sucker’s rally
American house price falls, the malaise that started the crisis, will continue. They are deflating at a 32% annual rate now, up from 8% six months ago, and with 4.6 million homes on the market – almost double the average inventory in pre-bubble days – the outlook is grim...
Posted by cornishman @ 02:44 PM (392 views) Add Comment
3 Comments
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1. cornishman said...
8% deflation rate 6 months ago
32% deflation rate now
- that's a hell of an increase in price falls in such a short space of time.
And the UK economic cycle is how many months behind the US?
2. drewster said...
There is a danger in extrapolating one month's 3% fall to a 32% annual fall. The article doesn't clarify whether this is a 1, 3, 6, or 12-month average. Most commentators say you need at least a three-month average for it to be meaningful.
3. cornishman said...
@ drewster - fair point