Wednesday, April 02, 2008

S&P: Spain, U.K. Housing Corrections Could be "Severe and painful"

Via CNNMoney: U.K., Spain housing markets face major corrections - S&P
Standard & Poor's Ratings Services said Europe's housing markets are finally, and overwhelmingly, turning down.

'And in those countries where the housing bubbles have been expanding for longer, Standard & Poor's believes the corrections could be severe and painful,' the agency added.
The article notes that the price-to-income level is at a record high, and household debt is at "unprecedented" levels compared to GDP. Sounds familiar.