It doesn’t require rocket science to work out that house prices took a massive hit when the world went into recession in 2008. Six years on we have the benefit of hindsight and bearing in mind the future is easier to predict when armed with historical data, what is the general consensus on how house prices will fare over the next few years and, more importantly, will property become more affordable for the individual in the same time frame?
It is crucial to remember what caused the recession in the first place – lest we forget and wind up in the same situation again further down the line. Without wishing to point the finger but instead making a sweeping gesture towards the other side of the Atlantic, Needless to say when that bubble burst, the liquidity crisis that followed spread like a Mexican wave across the globe.
The American banking community was in the proverbial way deeper than they imagined and it wasn’t long before all the sub-prime lending malarkey sent shockwaves throughout the world’s economy. Banks were being bailed out by other banks (to add to the confusion) and even worse, banks were being bailed out by the taxpayer and not …read more
Source: IPIN Live