A larger then expected number of homes were available in the UK in May and June however prices continue to rise slightly. With only a .1% increase in the cost of a home the UK market is still far ahead of US home sales which are now commonly short sales or foreclosures.
However since the beginning of the year the overall price of homes in the UK has risen 3% and this is without incentive programs implemented by the Obama administration that have cost tax payers hundreds of billions of dollars.
As a matter of fact it seems Europe as a whole with the exception of Greece has fared better by making cuts to budgets in order to bring their expenditures into realistic proportion of tax revenues.
England has just introduced emergency limits of 23,000 persons a year on migration that is reserved to highly trained technical services and they are cutting their budget all in hopes that this will keep their economic rating in tact. There has also been talks of recalling the Euro or revaluing the currency into two or more classes which will preserve the buying power of stronger nations as others decide to not follow budgetary reorganization that will bring their economies back into balance.
If America expects to recover in any short time we have to follow the lead of other nations that are reviewing their expenditures and not decide to fund programs which are a temporary sugar rush and leave us ten times worse off then where we began.
Housing markets have boomed a number of times in the past 100 years and we have always bounced back. Unfortunately this time around the bubble was manufactured by Quasi Governmental Lenders like Fanie and Freddie providing loans with out proof of income or ability to repay the loan. Fostered by Congress the programs that lead to over building have left us at the ransom of a large sector of our population who received homes they never should have qualified for.
US Housing Market Annalists fear another dip in sales for the end of summer into the fall of 2010. This may come with a third round of bailouts and payoffs of mortgages pushing us even deeper into economic trouble.
This is sure to lower the price of homes placing more people underwater and result in even more foreclosures.
No matter how you look at it the farther we go down this path the worse it is going to get no matter which side of the for sale sign you are on.