For anyone possibly thinking about getting back into the property market here’s a scary prediction from Dominic Frisby over at MoneyWeek on just how much further houses prices have to fall. To illustrate his point Frisby throws up two charts.
Firstly there’s ‘Manias and Bubbles’ as devised by Dr Jean-Paul Rodrigue’s, economist at Hofstra University:
And to compare, here are historical UK house prices:
Quite a parallel, indeed. All of which means if chart 1 really is a fair illustration of how a bubble works, UK homeowners are only merely in the denial stage.