Posted by Sada Mosler on July 28th, 2008
|U.K. Hometrack House Prices Fall the Most Since 2001|
|Brown Says He Won’t Turn to ’70s Agenda After Defeat|
|Darling Considers Expanding Mortgage Bond-Swap Scheme, FT Says|
by Brian Swint
(Bloomberg) The average cost of a residential property in England and Wales slipped 4.4 % in July from a year earlier to 168,500 pounds ($336,000), Hometrack Ltd. said. Prices fell 1.2 % from June. “With no immediate end in sight to the current uncertainty, activity levels are likely to remain suppressed with prices remaining under pressure into the autumn,” said Richard Donnell, director of research at Hometrack. Prices “are now back to levels last seen in October 2006.” Demand for housing has declined 20 % in the past three months, Hometrack said.
Note how much higher prices are vs the US.
It’s another case of going up very fast and now working its way down towards a more historically normal trend line.
But as in the US, they never come down quite that far before turning up on a new path from a higher base as much of past ‘inflation’ remains indefinitely.