us market lucky to have crashed so hard
News Posted On: 05 December 2011
When the UK followed the US into a housing market crash, experts predicted a crash of fantastic proportions, but only in the US has it actually materialised, and in a way they are lucky. No one can call the millions of people who have lost their homes and jobs lucky, but the market is lucky, because only when you hit rock bottom can you climb back up.
In the UK, prices fell throughout 2007 and 08, but by mid-2009, after around a 20% drop prices started to rise. By the end of the year they were up by 6% on average across the country. Although only the south had seen prices grow by anywhere near that amount, prices in most areas of the country had performed better during the 7-8 month period.
This changed in mid-2010. Prices continued to grow in London and the south, but even in the north there has been no further drastic falls, certainly nothing that has taken us to the doom scenario imagined by those at the start of the crash.
In the US millions of people have lost their homes, prices are down to 2003 levels, affordability it as a 30 year high, but homeownership is at an all time low, and prices are still falling.
In most of the UK house prices are stagnating, and the majority of first time buyers cannot afford to buy for one reason or another across the country. First time buyers are the life blood of any healthy housing market, and that is why the US is lucky.
They call a house price crash a correction not just because it sounds better, but because it is a necessary correction to rapid inflation, when house prices get too high and first time buyers can't afford to buy the market corrects itself. IN the US they are going to a hard bottom, and only when you get to that bottom can you enjoy a recovery. In the UK god knows how long we will be stuck in stagnation, facing the ever-present danger of a second correction.
View America property for sale
Written by Liam Bailey
Back to news articles for this country
Latest Related News Articles in America
Fewer Homes for Sale Means Prices in US Are Strengthening
2012-05-16
There are fewer homes for sale in the US, and this means prices are strengthening, especially in mar.....
Planning to Buy a Foreclosed Home - Here are 6 Useful Tips
2012-04-26
If you don’t already know, foreclosed homes in the United States have been going for bargain prices .....
Short Sales Up Prices Down in US Housing Market
2012-04-24
he firm reports that supply is falling, but prices are continuing to fall also. It says that falling.....
New Act in US Could Boost Property Market
2012-04-18
A new act which is currently going through the US Senate could boost the property market, as it is a.....
US Homeowners in Negative Equity May Be Eligible for Tax Breaks
2012-04-13
It’s estimated around 11 million people in the US now have mortgages which exceed their homes value,.....
US Real Estate Market Propped Up By Chinese Buyers
2012-04-06
Latest reports suggest that the still-struggling US housing market is getting unlikely support from .....
Bidding Wars Highlight Recovery in the US Property Market
2012-04-04
As the property market in the United States continues to recover, bidding wars are beginning to make.....
Surging Confidence for Strong Spring Sales in US
2012-04-02
Economists are predicting a strong spring selling season in the US housing market. Existing home sal.....
Predictions Grow Pessimistic on US Property Market
2012-03-28
According to the Zillow Home Price Expectations Survey for March, US economists have revised their p.....
New Home Sales Drop Cools US Recovery Fever
2012-03-26
Existing and new home sales have seen considerable rises over the last few months, bringing down inv.....