I know that the real estate market is not exactly booming in the U.S., but I was reading an article the other day about the market in the U.K. that really shocked me.
Apparently, mortgage loans dropped 95% between July 2008, and August 2008. That’s not a misprint, they dropped 95% in a single month. It gets even scarier when you look deeper into the figures. Home loans are down 98% year on year, with only £143 million in new loans in August. To give you some background the U.K. has a population of approximately 61 million people, and the median home price is £161,000 (approx $290,000).
The U.K. housing market is about 12 to 18 months behind the market in the U.S., so the worse is still to come. So the next time you start to think how bad our market is, just remember there is somewhere that is worse off than we are.