Like California, Great Britain has witnessed several major housing bubbles since the early 1970s. Great Britain has growth restrictions like California, so when prices get overheated, supply can’t come to market to blunt the increases. Once these rallies get started, they are self-perpetuating. They go on until Ponzis implode and lenders take away the punch bowl. Unlike California realtors, estate agents in Great Britain recognize that house price volatility creates volatility in their income in addition to causing a great deal of pain and hardship on ordinary citizens. Rather than lobbying for more volatility and endlessly higher prices as realtors in the US do, estate agents in Great Britain lobby for constraints on appreciation and stable house prices. It’s quite refreshing to see a group trying to do what’s best for homeowners. Why isn’t anyone in the United States concerned about a dangerous property bubble or a reckless build-up in consumer debt?
Posted on: Thu, 26 Sep 2013 21:54:28 +0000
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