Eas And Others Secretly Thinking House "market" About To Crash

[othello]

I live in Nth London and I really wish you were correct but I doubt it (and I lived through and bought during the last crash.) 20%-30% in real terms perhaps (perhaps at worst) but 80% is ludicrous to me.

80% seems a tad high but I have a friend who bought a docklands apartment in 1995 for £80,000. At the the time I thought is was an absurd amount of money for a new-build rabbit hutch. In 2004 it was 'valued' at £300,000. If it returned to its 1995 value that would represent a 73% drop in prices - perhaps 80% is not as far fetched as it seems.

Incidentally in 2005 it was 'valued' at £250,000... already a 16% drop from peak. That of course was before London won the Olympic bid so it is now 'valued' at gazillions, no doubt. However, when did we ever hear about a 16% drop in London prices??

Edited July 27, 2006 by othello

[Rachman]

80% seems a tad high but I have a friend who bought a docklands apartment in 1995 for £80,000. At the the time I thought is was an absurd amount of money for a new-build rabbit hutch. In 2004 it was 'valued' at £300,000. If it returned to its 1995 value that would represent a 73% drop in prices - perhaps 80% is not as far fetched as it seems.

Incidentally in 2005 it was 'valued' at £250,000... already a 16% drop from peak. That of course was before London won the Olympic bid so it is now 'valued' at gazillions, no doubt. However, when did we ever hear about a 16% drop in London prices??

And the big difference from 1995 is that Canary Wharf is now massive and sustains so many more high paying people and he bought at the floor. It won't go back that far unless some of our nutty Muslim flying enthusiasts decide to practice vertical landing there...