Economic history is a fascinating subject. Yet in our modern day of
instant news and second to second market analysis, it seems like the
media is bent on skimming over on only what is going on at the moment.
Even the deepest financial crisis since the
Great Depression
is now gone into the vortex of cultural amnesia. What is interesting
however, is that many countries around the world being incredibly
different culturally, went down into the rabbit hole of housing mania as
well. If you ever think Southern California home prices are
outrageous, you need only look at
Northern California. If you live in the Bay Area, all you need to do is look at
Canada.
There has never been, from all the history I’ve reviewed, of a
universal and unified housing bubble that touched nearly every continent
at the same time at such a big magnitude. Let us take a trip around
the world and see what other housing markets are doing.
Those in bust mode
Two countries with giant housing bubbles that are still in the bust phase are Ireland and Spain:
Home values in Spain are now down by 27 percent from their peak while
in Ireland, housing values are down a stunning 55 percent. It looks
like prices in Ireland might be hitting a bottom but in Spain, given
that over half of their young are out of work, it might be hard to see
this picking up anytime soon at least from domestic demand. Easy money,
fast building, and inflated prices.
(more)
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