UK Prices start falling, "housing ladders" can go down too
Boom turning to gloom as house prices begin to show signs of falling
UK Banks start failing
Northern Rock Gets Emergency Bank of England Funding
Renting significantly cheaper than "owning"
Now is time for renting, not buying your property!
UK has its own bubble blog
September 15, 2007
Hear Ye, Hear Ye!!!! British HousingPANIC (HousingPANIC.co.uk) is now here!!!
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What took so long?
It's going global.
The English caused a bubble all over Europe with their speculation
http://www.ukpersonalloanstore.co.uk/news/200709/worldwide-house-prices.html
At the same time house prices around Europe have begun to cool, even in previously overheated areas. It has an ominous echo of what happened at the start of the US sub-prime crisis about it.
Irish property prices have fallen for four months in a row as higher interest rates in the eurozone have started to have an impact.
In the Baltic meanwhile, the bubble may also have burst. The Riga region of Latvia has seen house prices fall by 3.5% in June, having previously gone down by 1% in May. Earlier in the year flats in the city had become more expensive than Berlin as speculators took a chance. Mortgages were taken out in Swiss francs, Euros and Japanese yen, which could result in major problems disastrous if Latvia’s currency was suddenly devalued – which may indeed happen as the country has a current account deficit of 26% of GDP.
Recent booms in Romania, Bulgaria and Croatia are looking vulnerable too. Danske Bank warned that much of Eastern Europe has seen a monster bubble that may burst like the one in Asia in 1997.
In Ireland house prices have fallen by 2.6% in the first half of 2007, with Dublin seeing a drop of 3.3%. As a result house building has slowed down and house registrations are down by 34%. Ireland has around 15% of its housing stock currently sitting empty.
Why do speculative markets always end in panic selling? Think of speculative market investors as players in a game of musical chairs. The chairs represent the safe positions where a nimble investor winds up with cash proceeds from the sale of their securities at a high price when there are still many buyers, before the music stops. The alternative position, standing, is the position occupied by everyone else after the music stops. These players are stuck holding their securities for lack of a buyer as values drop 20%, 30%, 40%, 60%, 80%... In a selling panic, there are few if any buyers.
When the game is on, the players circle the row of chairs while an orchestra comprised of financial services company employees -- brokers, press agents, market analysts, and others involved in marketing and selling equities-based financial products to investors such as investment trusts in the 1920s and mutual funds now [hedge funds in 2007] -- play in concert with popular press reporters and editors, financial planners and other groupies who play off the same sheet music. Those who don't play off the same sheet music are labeled "contrarian" and are sent off to remote web sites where they can play their odd sounding music in obscurity.
http://www.itulip.com/forums/showthread.php?p=15180#post15180
any news on german real estate prices? what about denmark?
Anon said:
‘Ireland has around 15% of its housing stock currently sitting empty.’
How much longer can investors sit on vacant properties before lowering the price to begin moving inventory?
Isn’t there cost to holding on to them, like Taxes etc?
Can someone explain
This is gonna get real ugly
Ok, now WHO is going to be buying a house next week in the UK?
Amazingly there will be plenty. Do these people have any brain at all?
"Amazingly there will be plenty. Do these people have any brain at all?"
There's just as many brainless here in the USA, and likely many more. This country has become "consumption obssessed".
75% of the people I know only want to talk about things they bought or did that requires spending money. They can't stand not being continually entertained.
BTW, if you're not Christian, started Googling bible prophecy sites and find out how today's news events line up with end times bible prophecies like no other time in history and how the Quaran's mahdi is described exactly as the antichrist in the bible.
The economic morass we're going to face is also mentioned among hundreds of other signs.
"Got Christ?, it's HELL without him"
Keith, I'm praying you'll allow this post.
Europe also has rapidly aging and for some countries rapidly shrinking populations to deal with. Italy and Germany will actually shrink by 40-60% in population over the next 40-50 years. Also at their current rate of reproduction everyone in Japan will be able to live in Tokyo in 2100. This will be putting a lot of pressure on prices very soon.
Keith, you have just got to post that awesome Housing Crash video they link to:
http://tinyurl.com/9l5gf
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