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Some New Us House Price Bear Article

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http://www.fool.com/news/commentary/2005/c...ary05102606.htm

Not much we didn't know already but nice to see the US bears publicising the bubble issue.

It's odd. People here (U.S.) seem very accepting of the concept of a housing bubble and the fact that their own homes may be overvalued. It's talked about quite a bit.

I just returned from England, however, and over there, people remain in denial. Prices are definitely dropping in England, though. (The prices you are told by the EA you can offer, not the actual listing prices.) My gut feeling is that prices have slid back to 2003 levels. I'm waiting, of course, for 2001 levels!

By the way, I found many English sellers talking about SIPPS. They seem to think prices will pick back up in spring when SIPPS goes into effect. As we all know, SIPPS isn't going to have the impact people think. But we may have to wait until this fact sinks in with sellers (next summer?) for prices to drop more quickly.

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It's odd. People here (U.S.) seem very accepting of the concept of a housing bubble and the fact that their own homes may be overvalued. It's talked about quite a bit.

I just returned from England, however, and over there, people remain in denial. Prices are definitely dropping in England, though. (The prices you are told by the EA you can offer, not the actual listing prices.) My gut feeling is that prices have slid back to 2003 levels. I'm waiting, of course, for 2001 levels!

By the way, I found many English sellers talking about SIPPS. They seem to think prices will pick back up in spring when SIPPS goes into effect. As we all know, SIPPS isn't going to have the impact people think. But we may have to wait until this fact sinks in with sellers (next summer?) for prices to drop more quickly.

Do you wonder why it's so different between the US and the UK? I have friend who just sold her house. Sold it for 13K LESS then it appraised for a year ago. (and a house around the corner is for sale and they are asking 75K more then hers sold for) She lost her job, and has been struggling for some time. She decided to sell and rent. She is going back to school. I have no doubt that people in the UK loose their jobs too, and need to sell. Does this not drop the appraised value when the sell cheap?

I wonder if rapid price drops in the US, will make people in UK get it that prices do drop.

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Do you wonder why it's so different between the US and the UK? I have friend who just sold her house. Sold it for 13K LESS then it appraised for a year ago. (and a house around the corner is for sale and they are asking 75K more then hers sold for) She lost her job, and has been struggling for some time. She decided to sell and rent. She is going back to school. I have no doubt that people in the UK loose their jobs too, and need to sell. Does this not drop the appraised value when the sell cheap?

I wonder if rapid price drops in the US, will make people in UK get it that prices do drop.

I don't know why the British are in more denial.

Anybody else want to offer an explanation?

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I don't know why the British are in more denial.

Anybody else want to offer an explanation?

[/quote]

There is a large home owning ratio in the UK, probably the largest in Europe, and the old adage that an Englishman's home is his castle holds true. Who wants to admit that one's castle is crumbling...........

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Hone ownership runs about 70% in the US.

[/quote]

US Census shows home ownership 66.2% in 2000 vs 71% in UK. Not that much difference I grant you, perhaps the answer lies in the psyche and levels of individual flexibility and mobility and resistance to change - perhaps we will never really know, interesting conundrum to dwell on though........

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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