Thursday, May 29, 2008
UK sure to follow
Economist: Through the floor
America's house prices are falling even faster than during the Great Depression
AS HOUSE prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons.
Posted by mken @ 07:20 PM (397 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
1. Urine Trouble said...
Any chance of a graph that plots amerkin house prices against our own. A graph like the one on the homepage would be good, just so we know what to expect.
2. uncle tom said...
OK, here are some comparison stats, using the most recent Halifax and Case-Shiller data.
Current average home price in USA is 72% higher than in Jan 2000; in the UK houses are 130% higher.
If UK prices fell to the point where they were 72% above Jan 2000 levels, they would be 29% below their highs of last year.
US marked peaked at 103% over Jan 2000; in the UK the marked peaked at 142% higher.
US market is still falling rapidly, but currently shows no signs of further acceleration (indicating a likely rebound) or of bottoming out.
It is therefore reasonable to conclude that US home prices are likely to fall significantly further without subsequently recovering to their present level.
By way of analogy, I would describe the US market as having climbed half way up a mountain and is now coming down on a toboggan, while the UK market reached the summit and has just fallen off a cliff..
3. scandinavian pessimist said...
Uncle Tom,
"I would describe the US market as having climbed half way up a mountain and is now coming down on a toboggan, while the UK market reached the summit and has just fallen off a cliff.."
Nice one! That post will go straight in my book of classic HPC quotes.