Wednesday, Apr 22, 2009
House Prices Still Crashing in USA, 2 Yrs Ahead of UK
NY Times: For Housing Crisis, the End Probably Isn't Near
The US housing market is two years ahead of the UK and still crusing at crash speed. Even though house prices there are only 5% overvalued by the usual measures, there is still a glut of property on the market and prices are still falling. This journalist bought as an FTB in 2008 to avoid having to having to move again while renting but now finds that house prices are still crashing 1 year on, despite reports of a recovery.
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Posted by an bearin bui @ 04:55 PM (1059 views) Add Comment
9 Comments
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1. Mr Minsky said...
Great link...compare New York for example, 6.9 times median income - where are we for London..still 10 times plus income
2. taffee said...
so US prices still to fall...UK prices way way way ahead of US
prices will fall for another 2-3 years at leats
3. dohousescrashinthewoods said...
Spot on - this is damning to the current rash of propaganda.
If the sheeple believe Darling when he says it will be better next year, just make the most of the psychological bounce to clear off any investments and Sterling you have left.
4. quiet guy said...
I agree with the gist of the article and offer another American commentator's view of the market:
http://www.oftwominds.com/blogapr09/housing-not-coming-back04-09.html
but let's not forget the big differences between the US and the UK markets.
5. cyril said...
I thought the US housing market was supposed to be more responsive than UK because the building rules are more lax and there's more land available. Therefore it is easier to cope with supply side pressure and also should be more relilient to busts. So the UK housig market should fall further than the US.
Personally I think this sort of supply and demand economic argument is a load of rubbish but some people seem to beleive it (e.g Gordon Brown, Kate Barker et al.)
6. Daniel said...
At Least this Journalist at the New York Times is honest and has integrity. You have to respect that. Like many, he is a FTB who fell for the EA rhetoric, and is now facing increasing Negative Equity.
Where as The [London] Times employ a number of journalists, who are BTLers, and they have, at every conceivable opportunity, lied, and proscrastinated, for their own benefit. Every week a story is printed about how it was all a mistake, and everyone is fine actually, and house prices are still going up! ........... Cuckoo............ Cuckoo......
You would never see the Times [London] print an honest article about which of their journalists and editors had bought what, and when.
7. quiet guy said...
@cyril
Surely the biggest difference between the US and UK is that American mortgages are mostly non-recourse i.e. the person losing their home cannot be pursued after repossession for the remaining debt. For me, that's the biggest difference. Buying near the top in the UK is a huge gamble that could haunt you for many years if things go wrong. in the US, it's all over relatively painlessly if you have the mental strength to let go and start again.
8. fubar said...
Interesting arrticle.
This paragraph caught my eye;
"In 2006 and early 2007, the official housing statistics were still showing that house prices were holding up. But that was largely because so many sellers were refusing to sell. "
To my untrained eye it seems we are still hovering around this point. Even though prices have come down a chunk. Hoping that's the case as I'd like to see UK recover its sanity.
9. fubar said...
Sorry that was a bit incoherent. I know we're Not hovering at that point. I meant the crash hasn't started properly yet here. Many are still hanging on for the upturn and I hope its a sign of a deep crash/return to sanity. Shouldn't try morning posting before my 2nd coffee.