US Real Estate is starting to crash. Will this happen in the UK too?
http://money.cnn.com/real_estate/index.h.
Answers:
HOPE SO
no, different type of market
US has LOTS of land, we dont in the UK
It's all down to supply and demand. There's a shortage of land and housing in the UK. Prices will continue to rise for as long as there are people able to afford them. If demand dries up, prices will fall. This last happened about 20 years ago.
The US real estate market is quite separate from the UK property market. For the markets to be linked there would need to be a pool of people prepared to sell in one market and buy in the other (like there is with equities / stock). This doesn't happen with property because few people have a choice in the matter.
I hope not i will be putting my house up for sale shortly
Prices go in cycles but price mainly depends on supply and demand. If demand remains higher than supply then prices will increase. As we are facing more and more people coming into the country, demand will increase.
There may be fluctuations and falls in less desireable areas but if you look at the last 50 years the trend is upwards.
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