UK Home Prices Still Hot

Those of you familiar with this blog have read recently posted articles that state the correlation of home price appreciation in the UK and California is 99% since 1980. That is too much of a correlation to ignore. After taking the year off in 2005 the UK housing market unexpectedly came roaring back in 2006. Could it portend a bottoming in our market and a spring fling for 2007?

U.K. house prices climb 1.4% in November: survey

LONDON (MarketWatch) -- U.K. house prices rose 1.4% in November from October, the Nationwide Building Society said Thursday. On an annual basis, house prices are up 9.6%, the highest annual rate rise since February 2005. "Some cooling seemed to be in prospect when the growth of buyer enquiries fell quite sharply in September, but this pause in demand was short-lived. At the same time, stocks of properties for sale are at a two-year low leaving buyers chasing relatively few properties. With instructions still falling, there is no immediate improvement in supply conditions in sight," the lender said.