Inquiring minds are looking to the UK Telegraph and seeing where their housing market is collapsing:
“On balance, while we believe that a sharp correction in house prices is unlikely … we believe that they could be some 10pc lower by end-2011,” he said.
Mr Archer’s predictions come the day before the Royal Institution of Chartered Surveyors (RICS) releases its latest housing market survey. He said the survey was likely to show that the supply-demand balance in the housing market was continuing to move “more in favour of buyers”.
“The July RICS survey showed that the number of new properties coming on to the market had risen at the fastest rate since May 2007,” he added. “This is particularly significant as a shortage of properties was a major factor in the recovery in house prices from their early-2009 lows.”
Mr Archer added: “Housing market activity is currently low, the economic fundamentals for the sector are far from ideal (notably high unemployment and muted wage growth), a major fiscal squeeze is getting under way, and house price/earnings ratios have moved up overall from their early-2009 lows and are above their long-term averages.
Does this all seem way too familiar? Hope springs eternal…
“On top of this, credit conditions remain tight with mortgages still hard to get for many people. Meanwhile, more properties have been coming on to the market for some time now, thereby moving the supply/demand balance in favour of buyers.”
And there seems to be a difference as no one can seriously believe that credit is loose in this country. It is almost impossible to get a loan these days on any level.
The entire world has run out of money.
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