Tuesday, Apr 07, 2009

Housing green shoots to die

Investors Chronicle: Housing green shoots to die

Four very good reasons why UK house prices are going to drop. THis article suggests another 15% drop over the next 4 to 6 years.
"In the last few days, some green shoots have appeared in the housing market. The Bank of England has reported a rise in mortgage approvals, and the Nationwide Building Society says that prices rose 0.9 per cent in March. These green shoots, however, are likely to die. The chances are, house prices will continue to fall. I say so for four reasons...."

Posted by tpbeta @ 12:46 AM (376 views) Add Comment

1 Comment

1. mark wadsworth said...

Good summary.

But if price-to-rent ratio is 27% above long term average and rents aren't rising, then prices would have to fall by around 20% to get back to the average.

And then there's the overshoot, of course ...

Tuesday, April 7, 2009 10:14AM Report Comment
 

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