Which housing market is in more trouble, the UK or the US?According to the Case-Shiller index, the US housing market peaked in July 2006. Since then, the composite 20 index is down 25 percent. Moreover, it took 28 months to clock up that price decline. In other words, the US market fell roughly 0.9 percent a month.
Here in the UK, the market kept rising until October 2007. Since then the market has fallen 19 percent. That decline was accumulated over 15 months, which adds up to a monthly decline of about 1.3 percent.
In absolute terms, the US crash is ahead of the UK's, but we are catching up fast. If present trends continue, the UK should overtake the US by mid-year.
3 comments:
Nice comparision
The US is less cramped, so their market can be more volatile?
I find it amusing that some sections of the media are now trying to talk up the market even though there are substantially less investors around now to make house prices go up. This crash is only just starting. It has at least 2 more years to run in my opinion. Wait for 3 months of consecutive house price rises before diving in.
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