With regard to my comment yesterday on housing prices “already beginning” to correct, here is a report from across the pond: Guardian Unlimited Money | News_ | House prices fell in December.
Note that interest rates in the UK crossed the trough before those in the US. Rates started climbing in Australia round about the same time, and the lines at open houses Down Under have long since disappeared. Also keep in mind that the UK is densely populated, and is loaded with real estate speculators (those buying properties with no intention of moving in and/or investing in developments), much like many of the areas in the US which have see the biggest price increases. Those speculators will go running for cover first. Then the games begin.
I may be way off base, but these three countries (the UK, Australia, and the US), have something else in common too, trade deficits. Wealth being sucked out of the systems, some (like the US) at an alarming rate. With price driven by indebtedness, and liquidity on shrink, I say…
Welcome to the global economy.