Well its Thursday and the house price figures for July are out. MINUS 1.7%
From the Peak of last year in Sept 2007 to June 2008 the Nationwide figures showed a fall of 12.1%. Now add July and we have a fall from last years peak to today of 13.8% which makes this the fastest house price crash ever recorded in post-war UK history.
The graph above is dropping steeply and won't stop until it has gone below the long term trend line of average house price equalling 3.5 times average earnings. From a peak ratio of 6:1 they will fall by around 50% in real terms (adjusting for inflation) to get back to long term averages.
The sun shines, Big Brother enters another season and most people have no idea that the economic situation is actually worse than the 1990 crash/recession.
Be ready for the fallout.
NO JOBS FOR PILOTS.
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