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LONDON HOUSING MARKET COLLAPSING? — Worst Drop Since the Financial Crisis!

783 views · Published 16 April 2017 · 7:02 · Indexed 25 October 2026

Channel: Mike Martins · 2017 · News & Politics

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“Housing is not a commodity. It’s a place to live and pass time and raise a family if you got one.” — Mike Martins

Hey YouTubers, Mike Martins here with the Mike Martins Channel.
We're continuing the Housing Crisis series, and after asking which housing market in the English-speaking world could become the first domino to fall, London is suddenly looking very interesting.
I'm looking at an article published by Zero Hedge discussing London's housing market and reporting that conditions have deteriorated sharply.
At the end of 2016, we were already seeing cracks.
According to the figures discussed in the article, London asking prices fell 4.3% in December, with Inner London down roughly 6%. Some of the most expensive areas, including Kensington and Chelsea, reportedly experienced even larger declines approaching 10%.
Now we're into 2017, and another indicator is flashing red.
The article cites the Royal Institution of Chartered Surveyors, with its London price balance reportedly falling to -49 in March — its weakest reading since February 2009.
Think about that.
We're talking about readings going back toward the aftermath of the global financial crisis.
So what's causing it?
Is it Brexit uncertainty?
Is it China's crackdown on capital leaving the country?
Is foreign investment slowing?
Are wealthy international buyers becoming less interested in London?
Or have prices simply reached a point where the people who actually live and work in London can no longer afford them?
That's the part I've been talking about for years.
Housing is not just a commodity. It's somewhere to live, raise a family and build a life.
When prices become disconnected from the incomes of the people living in a city, eventually something has to give.
And here's where things become really interesting.
I've been discussing foreign capital flowing into English-speaking housing markets — Vancouver, Toronto, Sydney, Melbourne, Auckland and London. If China seriously restricts capital outflows, what happens to markets that have become accustomed to that international money?
And what happens when sellers finally need to sell?
A property sits for a year at £1 million.
The next seller lists at £950,000.
Another seller needs to move and lists at £900,000.
Now you've created new comparables.
That's how falling markets can begin feeding themselves.
I'm not saying we know exactly where this ends.
I'm documenting what we're seeing right now in 2017 and asking whether London could be the first major domino.
Because if London really starts falling, everybody watching Vancouver, Toronto, Australia and New Zealand should be paying attention.
Which housing market falls first?
Comment below.
Thanks for watching.
— Mike Martins

#london  #LondonHousing #housingaffordability  #financialcrisis  #vancouver  #toronto  #sydney  #melbourne  #auckland  #canada  #australia  #newzealand  #unitedkingdom   #mikemartins  #MikeMartinsChannel

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