Tuesday, Jun 09, 2009
Oh Dear Property Prices are Going to Fall
UK Money Pot: House Prices Could Drop by 50%
Article that uses HousePrice Crash Graphs. The most recent crash in 1989 took 7 years to reach its trough and 13 years to return to its former highs. But the crash in 1980 only took 2 years to reach the trough and 5 years to bounce back to former levels.
So what are we facing? A long sustained drop in house prices or a quick ‘correction’?
Concludes, "house prices needed to drop. They were getting silly and what we are seeing is a very swift correction."
What amazes me is to get it confirmed once again that after previous crashes it has taken years for prices to get back to where they were pre crash so why does ANYONE think prices will be back to 2007 levels before 2020? So what are sellers waiting for?
Posted by sybil13 @ 10:04 PM (642 views) Add Comment
1 Comment
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1. quiet guy said...
Thanks for an interesting post sybil13.
The full article title is "House Prices Could Drop by 50% - But I’m not Convinced."
I'm not convinced by the article either. The author places a lot of emphasis on the ratio of house prices to earnings. Personally, I'm beginning to suspect that unemployment rate changes are a much better predictor of inflation adjusted house prices.