Another country heard from: Britain
In the misery-loves-company department, Inman News publisher Brad Inman reports on the housing situation from Europe as he meets with real estate industry types there. First stop, London:
The European housing markets are turning as bitter as vinegar on chips as property sales and prices come tumbling down.
Property values fell to their lowest level in 30 years in September, according to the Royal Institution of Chartered Surveyors. According to another report, home sales fell to 17,000 in June 2008 from 105,000 in June of 2007, and that was before the financial collapse of late summer and fall.
Prices have fallen 15 percent in the last year with some local experts predicting a 50 percent drop before the bottom is reached. As many as 60,000 homeowners are dipping into "negative equity" per month. The U.S. market began to fall in late 2005. The U.K. market stayed strong until last year, but now it is falling fast.
Funny how that 15% doesn't look so bad compared to the Southland's median price slide of 33% since last September, according to DMA DataQuick. From the peak last year, Southern California prices are down 39%.
-- Lauren Beale
Thoughts? Comments?
Photo: A pedestrian walks by the Bank of England in London at the end of September. Britain's bad financial news has extended to the housing market. Credit: Andy Rain / European Pressphoto Agency
"...home sales fell to 17,000 in June, 2008 from 105,000 in June, 2007."
So, only 17,000 families in England escaped from purgatory. And in the meantime, millions remain trapped.
Posted by: MyLessThanPrimeBeef | October 21, 2008 at 12:59 PM
Millions may still be in purgatory, but far fewer are actually trapped there by anything other than their own recalcitrance. Three+ simple words to resolve even the most obstinate domicile steadfastly refusing to be unloaded on the gullible public: lower the price [you blithering moron].
Posted by: Nick | October 21, 2008 at 01:25 PM
Well just to add to your figures, there are 45,000 foreclosures expected in 2008 in the UK, and this looks set to get worse in 2009.
Totally agree with comment above - people just need to bite the bullet, and lower their prices.
BTW, as a Brit, I love vinegar on my chips - it's not bitter at all!
Posted by: Lorraine | October 22, 2008 at 03:26 AM
Funny comment. Any thoughts. My thoughts on this can go on forever. Basically those irresponsible people who never on planned on paying for house screwed it up this economy. Liberals won. Conservatives lost. American Dream handed out to everyone just because they have the RIGHT to own a house and live the American Dream. Its not a right its a priviledge. Sound familar? Next up Obama and free health care to all. Its a RIGHT not a privledge. Thats what he said. Spread the wealth. Does not everyone get it. Because everyone was given the ability to buy a house the values went way up, but those people never planed on paying for it. See the game is over. Not everyone is going to be Donald Trump. You want to buy something you need to pay it off 100%
We are screwed and this abuse may take down the entire global economy. This is far from ove yet...
Posted by: Realist | October 23, 2008 at 11:14 AM