We are still a long way from the bottom. We just have to wait.
For my money this is just a temporary blip caused by Crash Gordon and his dimwitted sidekick pumping money into the markets just recently. A similar blip was seen when the USA tried a tax rebate to reinvigorate their markets; those property owners who were on the brink of going bust and selling up got a temporary reprieve, which caused a blip.So no, whilst this may be where the true market value of a house should be, the market has not finished collapsing yet, not by a long chalk.
Dear Alice,Could you from now on begin your UK housing price index at the year 2000?Thank you in advance.Rambo
What is the default situation like? In our case, the banks holding some of our defaulted properties are sitting on them rather than selling them. Apparently they've calculated some lower limit on the prices they're willing to accept. That serves the same function as a price floor leaving distressed sellers who still have equity the only ones making sales below this level.
No. Still a way to go. Buyers are just sitting watching. When prices stabilise for say three months they may start to show interest again. Meanwhile, I suspect Xmas shopping also takes precedence.
Nouriel Roubini claims we're nowhere near the bottom in terms of housing prices.
Only back to 2006: seems an unlikely place to stop. Suppose that earnings get stuck (which is optimistic, I suppose, since some people are going to join the dole) and price-to-earnings ratio falls to 3. Then how much further have we got to fall?
The clever will use the Spring bull trap to offload the rest of their portfolios...B. in C.