This morning’s Daily Telegraph reported that, according to Lombard Street Research, housing affordability is now better than its long-term average. That much is uncontroversial. However, we disagree with their conclusion that the housing slump will be over by Christmas. Other valuation metrics, the dire economic outlook, as well as the experience of the 1990s, all lead us to believe that the correction will go on until late 2010.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services