House prices in the US going down, Now official

mroller

Prices have started to decline there.
Is it a warning sign to the uk market? surely they are correlated.


http://money.cnn.com/2006/07/25/news/economy/homesales/index.htm?cnn=yes

F_T_Buyer

The problem with the US is that it is so big, it's really 48 (or however many states they are) different markets. It's true that there is problems in a lot of areas, but it is also true that prices are reasonable in other areas.

Now when you come to the UK, everywhere is inflated. It is countrywide.

Is it a warning to the UK? You bet. But those warnings just float us by now a days, and barely get a mention in the main stream press...

PoorDave

mroller wrote:

Prices have started to decline there.
Is it a warning sign to the uk market? surely they are correlated.


http://money.cnn.com/2006/07/25/news/economy/homesales/index.htm?cnn=yes

Why would they be?

Actually looking for serious answers...

Interest rates?

F_T_Buyer

Every heard the saying:

"When America sneezes, the world catches a cold?"

We're a global economy now, all countries economies affect each others.

The USA is the biggest economy on Earth, if they go into recession (which the enevitably will do because of the housing bust) who will the rest of the world sell it's products to? China will be not happy.

UK007BullDog

All the comments above have merit, however UK housing market is different from the US housing market. They had very low interest rates and a huge building campaign, the market is over supplied and has been for quite a while.

The UK housing market is also fuelling the markets in other countries like Spain, Portugal, France and far away places like Dubai and now a lot of ex-eastern block countries see money from house sales here filter to retirement and investment properties over there, also in Florida. Inflating the prices and making it nearly impossible for locals there to get onto the housing ladder.

For every doom sayer I can find a person who is positive about the housing market, but negative news make better headlines.

meanmachine_2

UK007BullDog wrote:

For every doom sayer I can find a person who is positive about the housing market, but negative news make better headlines.

You clearly don't work for the Daily Diana, er, I mean the Daily Express.

In their topsy turvy world, massive inflation is a good thing. Doink!

meanmachine_2

UK007BullDog wrote:

All the comments above have merit, however UK housing market is different from the US housing market. They had very low interest rates and a huge building campaign, the market is over supplied and has been for quite a while.

Actually, the New York and Californian markets are very much like the UK's, so I'd be interested to know what's happening on the coasts. If even these densely populated areas are seeing falls, that could be interesting...