As stated before, the unwinding of the US housing situation has some way to go still before the system rids itself fully of all the excesses accumulated during the multi-year upswing. The following graphs from good friend Martin Barnes, managing editor of BCA Research, vividly illustrate the point.
But what about the UK residential property market? Is this a scary monster or am I missing something?
Admittedly the demand-supply situation in the UK looks entirely different to that of the US, but whether that is enough justification for the relentless surge in prices is another question.
Source: The Economist
The following video, narrated by a person only known to me as Gordon, casts some sobering light on the issue.
Before we all head for the highest bridge or tallest building, I dug out this video from a while ago on the previous UK housing slump done by Spitting Image as a spoof of the Our House hit by Madness.