delusionofgrandeur

Reuters has an alternative take on the apparent house price crash in the UK. They’ve totted up the value of all the houses in the UK and then worked out how much their collective value is falling by each day.

I have to admit that £1bn does sound an impressive number and the very fact that the total market value is falling by a billion pounds a day is probably indicative of how massively overinflated this asset price bubble had been allowed to become.

In context, the market worth increased by £750bn over the last three years so at the current rate of fall, it would take two years to return to the same point ie: The fall is faster than the previous climb (and that’s if you don’t adjust for inflation).

This entry was posted on Wednesday, June 11th, 2008 at 4:25 pm and is filed under Credit Crunch, Economy, Fantasy House Prices, News.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.