Sunday, April 19, 2009

U.K. Home Prices Going Up???

I don't see how this is possible. I didn't understand how it was possible last month and find it even less possible this month. U.K. housing prices were statistically more overvalued then U.S. prices on every statistical measure. Yet, accodring to Bloomberg, U.K. housing prices appear to have stabilized and going up.

U.K. house prices rose for a third month in April after mortgage availability improved, Rightmove Plc said today.

The average asking price rose 1.8 percent from March to 222,077 pounds ($328,000), the operator of the biggest U.K. residential property Web site said today. It fell 3.2 percent in London, the only region of 10 surveyed to show a decline. Home prices are down 7.3 percent from a year earlier.

I really don't understand how this possible. U.K. housing prices are still way way overvalued and you hve unemployment rising but so far this will go a long way to helping out banks in the U.K. as the stabilization of collateral values is key.

1 comment:

Anonymous said...

They seem to be touting an increase in the average asking price of houses listed on what may be the British equivalent of MLS.

Could have some relation to eventual sales prices but may not. Would not be surprised if it is a seasonal bump from more people listing heading into the summer selling season.

Count me as pretty skeptical there is any real information here.