Warning ! Some reading this may be offended and disappointed, but here are a few predictions for 2009. Do not read if you are faint of heart !

British property prices

British property prices are going to see a fall from the current average price of £ 158K to a new average price of £ 75K. A fall of over 50% Why? This is why -

"The current burst bubble is a direct result of the entire nation over-borrowing, with nothing to back it up. Savings in the UK are at an almost all-time low, and dropping interest rates to this level to discourage savers is not far short of insane. It is certainly not going to encourage people to borrow again. Everyone is all borrowed-out. Nor is it going to encourage the banks to start lending money hand over fist to every Tom, Dick and Harry that asks for a 120% mortgage. The current bust is directly related to over lending to poor risks, whilst at the same time not having the deposits to cover anywhere near a sensible portion of the loans." British property price prediction 2009 full article.

Luxury property prices

The luxury real estate market will not see bottom and an increase in prices for at least another two years. Why?

"Until the finance sector gets it’s act together, and there is some accountability, the luxury real estate market is going to continue to face issues and continue to fall in value. The Madoff scandal is the tip of the iceberg. My feeling is that there will be many more of these coming to light in 2009, because it is far harder to hide these sort of dealings in a down economy. All the time the next investors money can be used to pay off the first one, they can stay hidden. Pressure is mounting to bring some accountability to the financial markets, although the scams are so intertwined with government as to be all but impossible to unravel." Luxury real estate market prediction 2009 full article.

The coming housing crash

The real estate bubble is a world-wide issue. The markets are interconnected and not one will escape the mayhem. Why?

"Regardless of the world's governments' stated attempts to keep the cost of housing artificially high, property markets around the world are going to lose substantial value. The government bailouts of the financial sector will- perhaps - prevent the banking system from collapsing completely, but will have very little effect on the value of real estate." The housing crash. full article.

For alternative opinions -

House price crash UK has a selection ranging from 25% up to 50% down.

And Pravda think the luxury real estate market in Europe offers guaranteed increases in value. LOL