| From Citywire.co.uk: A property economist warns it could take 25 years for house prices to recover from a projected 35% fall. Bearish analyst Capital Economics said house prices would fall 35% over the next three years and provided the market was stabile, prices would not reach 2007 levels until 2036.
Capital Economics said its comments reflected the property market's overvaluation at the peak of the boom. The economists argued that even with above average house price growth, the squeeze on mortgage credit and the economic downturn will slow any recovery.
‘This is not a forecast but an illustration…it makes the point unless you rely on another unsustainable boom the climb back [to 2007 house prices] could take a very long time,’ said Ed Stansfield, property economist for Capital Economics..... Full Article: Source
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