No crash in the US according to Goldman Sachs
22/05/08 07:07 Filed in: Real Estate
Do you believe Goldman Sachs, the global investment
bank based in New York City? A recent report from
Goldman is rather interesting given the press
headlines concerning house prices crashing in the US.
"Property agents in the US are busy bussing bargain-hunters around repossessed homes, but falling house prices are relatively novel for Americans. When Goldman Sachs examined 15 developed countries that have experienced house price crashes since the 1970s, it defined a crash as a fall of at least 15 per cent in real, inflation-adjusted, prices. By this definition, the US did not qualify."
The US is a big place and the market fall in specific areas is largely balanced by the price rises in other markets. Hence the US has not see a crash so far based on the Goldman criteria.
The quote above comes from an article in the Financial Times Magazine (weekend supplement) on 10 May 2008. The article is titled The Information: House price crashes. Definitely take a look at the graphic that shows the 15 countries that have had crashes. You might have to zoom in a bit to read the country names on the far left of each timeline. Click here for the link to the graphic.
The US, Denmark and Australia are the three countries out of the original 18 that have not had a house price crash since the 1970s.
"Property agents in the US are busy bussing bargain-hunters around repossessed homes, but falling house prices are relatively novel for Americans. When Goldman Sachs examined 15 developed countries that have experienced house price crashes since the 1970s, it defined a crash as a fall of at least 15 per cent in real, inflation-adjusted, prices. By this definition, the US did not qualify."
The US is a big place and the market fall in specific areas is largely balanced by the price rises in other markets. Hence the US has not see a crash so far based on the Goldman criteria.
The quote above comes from an article in the Financial Times Magazine (weekend supplement) on 10 May 2008. The article is titled The Information: House price crashes. Definitely take a look at the graphic that shows the 15 countries that have had crashes. You might have to zoom in a bit to read the country names on the far left of each timeline. Click here for the link to the graphic.
The US, Denmark and Australia are the three countries out of the original 18 that have not had a house price crash since the 1970s.
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