Saturday, 24 November 2007
Time to call it: house prices in UK to fall
Many esteemed economists, such as the excellent Roger Bootle, have been calling the top of the UK house market for a long time. Long enough that to follow their advice would have left one out of pocket.
But now the signs are all there, the credit crunch, the Northern Rock debacle, the collapse in loans and now HIPS. Even in my road I can see that the two houses on sale have had a couple of price reductions and are still unsold, reduced 20% from their toppy starting marker.
There are a number of factors that will underpin the market to stop a US style rout; in the main this will be the huge pent up demand and lack of supply of anything except flats. In some areas I doubt the prices will dip hardly at all; in others people may well get wiped out with 50% falls and more.
I am glad that personally I have no need to move for a couple of years as this must make moving house at the moment even more excruciatingly painful than normal in the UK.
Posted by CityUnslicker