An economic think tank, Capital Economics, has issued a paper predicting that house prices are set to crash by up to 20%. It predicts that the boom is about to turn sour.
Our view
With all investment sectors, bust does generally always follow boom. No matter what Government's or others try to do to control economies, the cycle of buy low, sell high always comes into play.
The figures, whilst worrying, should ring major alarm bells for those who are about to buy or considering taking on huge mortgages now. For those who bought some time ago, or those who bought more than 6-12 montsh ago, this should not be a problem. You are only possibly going to lose the gain that you have made in the last 12 months!
Watch this space. For more on property visit Mortgage Crazy.com or search the news archive for property or mortgages.