Uh oh!
(European) property values fell to their lowest level in 30 years in September, according to the Royal Institution of Chartered Surveyors. According to another report, home sales fell to 17,000 in June 2008 from 105,000 in June of 2007, and that was before the financial collapse of late summer and fall.
Prices have fallen 15 percent in the last year with some local experts predicting a 50 percent drop before the bottom is reached. As many as 60,000 homeowners are dipping into “negative equity” per month. The U.S. market began to fall in late 2005. The U.K. market stayed strong until last year, but now it is falling fast.
Perhaps the best quote:
Estate agents (the equivalent of a Realtor in the U.K.), unlike the U.S., do not have their pictures on their business cards and do not market themselves or their properties like the go-go Realtors in America.
We vote for no more Realtor pictures on anything anywhere, except where beauty contests are involved.
–Brits get thumped like U.S. [Inman News]
never mind London – did you see the DQ numbers for Sf?
20% off peak, 7% in a month, down to 04 pricing and falling like a stone!
2004 pricing, eh?
Where?
Went and saw that very interesting 21st street property today. What would that have cost in 2004? I’d say like ~1M. Well it’s on the market for 1.295M and it’s gonna get bid up. Watch.
You need to factor in the lower performing neighborhoods when you look at that stuff. D10 is something like 30 % off peak, and it represents a disproportionate amount of sales too. I do not see 20% hits in D4, D2, D1, worse D5, D6, let alone D7 and D8. Not for SFRs.
Just coming out and saying “SF” is 20% down is not telling the real story. It isn’t. Every week another 100 properties go into the MLS. If that continues, and slow sales continue too, it will change things. But let’s not be like another site that shall remain nameless.
We have seen bottom in certain areas here, and people started buying, accordingly. Compare that phenomenon to Contra Costa or similar. It looks Also look at run of the mill D5. 20% ? 2004?
I am curious if this will bring down the Candy brothers. In case you are not familiar, the Candy & Candy brothers are famous early 30 something billionaires who started fixing up London flats and selling them for profit in the early 90s and WERE worth at one point over 10 billion pounds. (Who knows what they are worth now). They love having their pictures everywhere, and don’t mind showing off their yacht, and other toys on their website. Their design services create condo projects and interiors that have a Vegas meets Dubai atmosphere, of course they just opened their second office in Beverly Hills. Their top London projects are some of the most expensive psf condo projects in the world. I must admit I would not mind if they were taught a small lesson in humility, though I honor their unusual success.
http://www.independent.co.uk/news/people/candy-and-candy-sweet-dreams-777220.html
http://www.candyandcandy.com
You will never ever ever find my photograph on any of my marketing materials.
That’s great. Perhaps the Dalmation coast of Croatia is now affordable. Always want to go there and chill out and do nothing, but it’s completely over priced.