Pending Home Sales All Time Low; UK Bubble Bursts
Summary: The lowest reading since the index began. The UK enjoins the fray.
Pending Home Sales Feb -1.9% vs prior FLAT Full Report
Inside the number: YOY -21.4%; West +2.1%; South -5.5%; MW -3.7%; NE +3.2%
Not Just Here... UK Housing Bubble is bursting and it's serious...
The U.K.'s biggest mortgage lender HBOS plc said house prices dropped by the most since 1992 last month.
We often hear that these problems are caused by the sub-prime crisis in the US. But it's worth remembering that whilst overly loose lending practices in the US
pushed house prices to six-times the average salary, in the UK house prices are now nine-times the average salary.
Like we keep saying, when the prices get back down to what salary/rent's will support, prices will stabilize.
Pending Home Sales Feb -1.9% vs prior FLAT Full Report
Inside the number: YOY -21.4%; West +2.1%; South -5.5%; MW -3.7%; NE +3.2%
Not Just Here... UK Housing Bubble is bursting and it's serious...
The U.K.'s biggest mortgage lender HBOS plc said house prices dropped by the most since 1992 last month.
We often hear that these problems are caused by the sub-prime crisis in the US. But it's worth remembering that whilst overly loose lending practices in the US
pushed house prices to six-times the average salary, in the UK house prices are now nine-times the average salary.
Like we keep saying, when the prices get back down to what salary/rent's will support, prices will stabilize.
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