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There was good news and bad news for America's housing market. Sales of existing homes rose to an annual rate of 6.46m in January, the highest level for seven months. But after increasing in December, the median price of an existing home fell by nearly 5%, to $210,600. Separate data for the smaller market in new homes showed that sales plunged in January by 16.6%, to an annual rate of 937,000--the biggest drop in 13 years.



In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sun Mar 4th, 2007 at 06:15:22 AM EST
The median price/income ratio isn't way out in left field, though.  I believe this puts it at about 4.5, which exceeds the traditional bar, as I understand it, of 4 but pales in comparison to the 10 you'll find in many parts of Britain these days.  I believe average prices have reach levels above £300k in London, at this point, and even worse in some areas.  Ran through, just for the hell of it, a few real-estate searches on Great London the other day.  Found nothing -- literally nothing -- for less than £140k, and what you got for that money was essentially a four-square-foot trashcan in Bethnal.

So it's not, in my opinion, as bad as is sometimes feared, given all the hype in the press.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Sun Mar 4th, 2007 at 06:24:49 AM EST
[ Parent ]
See my last graph below. England is indeed in a worse bubble than the US.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sun Mar 4th, 2007 at 06:26:52 AM EST
[ Parent ]
Ah, do have trouble keeping up with all of your graphs, much as I love them.  The scary bit is that prices, last I checked, were not on their way down in Britain.  The correction appears to be well under way in the states, which is, of course, frightening but necessary.  When I last read up on housing in Britain at the BBC it appeared they were jumping up once more.  Something's got to give there.  You can't have citizens forking over six, eight, ten times their income for a house.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Sun Mar 4th, 2007 at 06:40:03 AM EST
[ Parent ]
Speak of the Devil: January House Prices Rose 1.3% (BBC).  Obscene.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Sun Mar 4th, 2007 at 06:47:56 AM EST
[ Parent ]

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