House prices fundamentally overvalued

According to the Economist survey April 15th, house prices in the UK are still 31% overvalued. In Britain the house price-to-rent ratio still outstrips its long-term average by nearly a third. Economist survey of overvalued houses

This contrasts with the US, where house prices are now 2% below their 'fair value'. This reflects a long period of house price falls.

A simple explanation is the surplus of housing stock in the US compared to the UK, where there was never a boom in house builds.

It is not the only factor, in the UK home repossessions have been less severe than expected. Undoubtedly helped by low interest rates, and banks reluctant to enforce repossession, many have been able to keep their houses when it could easily have been repossessed.

Category:

News & Politics

Tags:

• House Prices
• Property Prices
• Property Value

[NWOConspiracyGroup]

Houses prices will tumble big time and the rate of repossessions will soar. 2013 you will see things really take a turn for the worse.

[wdtvcg]

Knob! Maybe things have changed