House price crash goes global
No production, no income, no money to pay overpriced homes with no re-sell guarantee.
A new economy model will look for other colateral than real estate, knowledge to medium sized production replaces homes.
The property crash that began in the US is spreading across the globe, according to international estate agents Knight Frank, which said today that steep declines are now taking place across Europe and into Asia.
The country recording the sharpest fall is Latvia, where house prices have plummeted 24.1% over the past year. New Zealand, Denmark and Lithuania have all seen falling prices, along with Malta, Germany, Ireland, Estonia, Britain and the US.
Biggest fallers: Year-on-year house price change to Q2 2008
United States -16.8%
New Zealand -2.2%