Oct 17 2007
House Prices will Fall! Yeah right
The IMF (International Monetary Fund) is predicting that house prices will fall after rising 50% more than they should have done over the past decade. They are overinflated and need a correction. Fortunately we are not alone -it is even worse in Spain and Ireland. As far as the IMF are concerned, the European housing market needs correction to be sustainable in the long term.
Do we think that Britain’s addiction to investing in property is about to come to an end? Not likely. Every drop in price will simply lead to investors “bargain hunting” because we are so damned irrational about the whole thing. Anyway, none of the analysts think that there will be a full scale crash, more like a 2-3 percent fall over the next couple of years.
