The Mudcat Café TM
Thread #94744   Message #1836700
Posted By: George Papavgeris
17-Sep-06 - 12:31 PM
Thread Name: BS: House price crash in the UK?
Subject: RE: BS: House price crash in the UK?
Going back to the original question - whether a house price crash in the US might spread to the UK:

House prices are affected mainly by two factors: Availability of desired housing (the old supply-demand bit) and availability of funding (whether by savings or by banks). Of these, the second might conceivably spread from one country to the other, especially as the two economies are linked; but the first - which in my view is the strongest factor of the two - is mainly regional, and cannot eaily be translated to another country except where mass immigration might be involved (say if prices fall so much in the US that a lot of Brits decide to emigrate there; not very likely in my opinion).

So I can't see a domino effect, which is what the question was about. And indeed I cannot recall any such domino effect between countries in the housing market.