Monday, Aug 18, 2008

London house prices fell 14% if considered in USD

Seeking Alpha: London House Price Datapoint of the Day

"The average asking price in Wandsworth fell from £522,000 to £481,000 in a single month - or 7.9%. In dollar terms, of course, it's much worse: £522,000 on July 15 was $1,045,000, while £481,000 on August 15 was $896,000. That's a drop of $149,000, or 14.3%, in one month."

Posted by mountain goat @ 10:30 PM (410 views) Add Comment

6 Comments

1. little professor said...

Now that's just being silly.

Monday, August 18, 2008 10:59PM Report Comment
 

2. Jayk said...

"The average asking price in Wandsworth fell from £522,000 to £481,000 in a single month - or 7.9%. In dollar terms, of course, it's much worse: £522,000 on July 15 was $1,045,000, while £481,000 on August 15 was $896,000. That's a drop of $149,000, or 14.3%, in one month."

And the prize for the most pointless post of the year goes to.........

Monday, August 18, 2008 11:00PM Report Comment
 

3. jonb said...

House prices are going up if considered in Zimbabwe Dollars, but neither is a particularly meaningful statistic.

Monday, August 18, 2008 11:06PM Report Comment
 

4. Confused76 said...

London has fared much worse if you do the math in euro terms... a fall of 24% since March 2007!!

may I, may I, may I... yes I may..... MWAHH UA AUUA UAU U UHHHA HHAHAHHAHAHAH AHHAHH

Tuesday, August 19, 2008 12:01AM Report Comment
 

5. drewster said...

jonb, I beg to differ.

Many people use the dollar as their reference point. This includes the wealthy non-doms who are partly responsible for the housing market excesses in London. Look at the international media - even the Economist, published in London, refers to all prices in dollars first. A non-dom from a country like India or Russia hasn't had a stable home currency for much of the past two decades, so the dollar serves as an easy marker for international comparisons.

Furthermore the currencies of several important countries are tied to the dollar: Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Oman, Lebanon, Hong Kong, Ecuador, El Salvador, East Timor, Panama, and until recently Malaysia and Kuwait. Several small island states use the dollar or dollar-linked currencies. In many poorer countries, the dollar is accepted as de-facto currency for transactions large and small. Many international goods are priced in dollars, from oil and commodities to aeroplanes.

London house prices have already fallen in Euro terms, scaring away European investors. Now falling dollar values are likely to frighten off not just Americans, but also international buyers from across the world.

Tuesday, August 19, 2008 12:09AM Report Comment
 

6. renting2 said...

Agree with drewster, it is a relevant measure.

Tuesday, August 19, 2008 08:18AM Report Comment
 

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