Sunday, October 12, 2008
As we are supposed to be talking about house price crashes, I thought I might put this one up
Another article about how people who thought their house was their pension are now realising that it isn't going to pay up. But what is interesting is the paragraph halfway down which says 'Mead believes that, for most people, it makes sense to hang on in – not least because of the dearth of potential buyers. “After the crash of 1989, it took seven or eight years for prices to come back,” he says. “This time it’s different, because everything has happened so quickly. Prices have dropped by 25% in six or seven months, so it should take only three or four years for them to come back.” ' No it's not. The crash has only just started, and prices won't "come back" for a very long time, if ever.