Sunday, September 28, 2008

California House prices..

.. are down 41% from a year past August. Sales however were up 56% from the same time and 4.4% up on July. House price deflation has now almost levelled out, with a slowing rate of decline all this year to just .4% in August 2008. The average price, of course, is much lower than ours.
It'll take a couple more months, but the house price drop will no longer exist come Christmas. By spring, Californian prices might be tentatively improving. As I reported previously, sales have returned to 2001 levels and look as if they might hold there.
On that basis, UK prices still have a long way to fall - and a long time to do it.
Spring 2010 is time enough to start looking again.
What it does show, as ever, is whenever the Government gets round to doing something, its already too late. Arguably, the Fed bail-out plan is not necessary.
There will, however, be a huge number of politicians and financiers breathing a huge sigh of relief when it passes Congress.

No comments: