AvidFan Posted July 9, 2008 Share Posted July 9, 2008 (edited) http://uk.reuters.com/article/personalFina...E92942220080709 Housing downturn worse than early 1990s Wed Jul 9, 2008 9:10am BST LONDON (Reuters) - The downturn in the housing market has gathered pace and now feels "an awful lot worse" than the last major correction in the early 1990s, the chief executive of builder Bovis Homes (BVS.L: Quote, Profile, Research) said on Wednesday."Many people are commenting now that this feels an awful lot worse than the downturn in the early 1990s, which I would certainly concur with," David Ritchie told Reuters. .../ I'm not sure whether it should feel twice as bad, as that's the difference in the trough-to-peak valuations between the 90's run-up and the naughties run-up, or three times as bad, as that's the ratio of debt in 2008 to 1997... Twice as bad, three times as bad, who cares. It's going to be the mother of all crashes and houses will be as "cheap as chips" in a few years... Edited July 9, 2008 by AvidFan Quote Link to comment Share on other sites More sharing options...
Guest Mr Parry Posted July 9, 2008 Share Posted July 9, 2008 http://uk.reuters.com/article/personalFina...E92942220080709Housing downturn worse than early 1990s Wed Jul 9, 2008 9:10am BST I'm not sure whether it should feel twice as bad, as that's the difference in the trough-to-peak valuations between the 90's run-up and the naughties run-up, or three times as bad, as that's the ratio of debt in 2008 to 1997... Twice as bad, three times as bad, who cares. It's going to be the mother of all crashes and houses will be as "cheap as chips" in a few years... Yep, spoke to mate whos a senior QS for a major groundworks firm in the south east on Saturday. Asked how things were, "DIRE" was the response. Said the credit crunch had finally bitten and NOTHING WAS GOING ON. Reckoned it would all be back to normal in 12 months, stating the US was now coming out of recession and we were 12 months behind them. I didn't have the heart to tell him otherwise. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted July 9, 2008 Share Posted July 9, 2008 Yep, spoke to mate whos a senior QS for a major groundworks firm in the south east on Saturday. Asked how things were, "DIRE" was the response. Said the credit crunch had finally bitten and NOTHING WAS GOING ON.Reckoned it would all be back to normal in 12 months, stating the US was now coming out of recession and we were 12 months behind them. I didn't have the heart to tell him otherwise. How does he know the US is coming out of recession? because iam still waiting to hear about the US IN recession. Quote Link to comment Share on other sites More sharing options...
Guest Mr Parry Posted July 9, 2008 Share Posted July 9, 2008 How does he know the US is coming out of recession? because iam still waiting to hear about the US IN recession. I really didn't stop to ask, Crash. He BTL'd recently too and he is a mate and I didn't want to rub it in. He's 30 so dosen't remember the last crash, it's dynamics and full implications. I was running out of airtime on my phone too. Truth is this thing will run and run. If that clever chap who wrote "First Snows of K-Winter" thread is right and we have just been through the credit Kondratiev cycle, it should run on for the next 10 years at least by my reckoning. Quote Link to comment Share on other sites More sharing options...
poppyseedbagel Posted July 9, 2008 Share Posted July 9, 2008 I think people are interpreting house price falls of 15.3% in US rather tha the expected 15.9% falls as the worst is over in USA (an otherwise very savvy frind of mine does anyway.) Quote Link to comment Share on other sites More sharing options...
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