UK and USA housing markets both falling

UK and USA housing markets both falling

Estate Agent vs Analyst

If anyone, either in the U.K or the U.S.A needed an incentive to look overseas for their next property investment, recent reports released in both counties should provide it.

Rightmove, an online U.K estate agent recently released a report that shows UK asking process have dropped for the third month in a row.

In the last month, the average asking price for a house in the UK dropped 0.8 per cent to £230,428, bringing the annual rate of increase down to 3.4 per cent – the lowest since December 2005.

Not wanting to scare home owners too much, Rightmove also said there was evidence of an increase in activity in the market and a rise in average prices immediately after the new year. Miles Shipside, commercial director, said the January housing market seemed to be showing its usual upturn after several months of falling prices.

He said: “Some properties have had their prices dropped by 10 per cent or more and are now within reach, satisfying some of the pent-up demand from previously disenfranchised buyers.”

Across the pond, The International Herald Tribune reported that, “Sales of existing U.S. homes fell in December, closing out a horrible year for housing in which sales of single-family homes plunged by the largest amount in 25 years. The median home price dropped for the entire year, the first time that has occurred in four decades.”

And the IHT’s property blog has some an entertaining opinion on the “semi delusional boosterism, prevailing in an effort to prop up an obviously falling market.

On a more positive note if you missed it, we recently took a long, hard look at likely global property investment opportunities in 2008.