housing - playing with the big boys

  1. 3,694 Posts.
    May 29 (Bloomberg) -- House prices in the U.S., the U.K. and four other major economies will drop ``dramatically'' in the next few years, leading some of those nations to slip into recession, according to a report by the Economist magazine.

    Rising home values in the U.S., Britain, Spain, the Netherlands, Ireland and Australia have created a ``property-price bubble,'' the magazine said in an e-mailed release. It collected data going back to 1975 from sources including estate agents, lending institutions and government agencies.

    ``In all those countries house prices are seriously overvalued,'' said Pam Woodall, economics editor at the Economist. ``At some stage in the next few years, house prices in those countries will fall and when they do the consequences will be far nastier than the stock market burst.''
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.